Toronto stocks fell sharply on Thursday, as investors locked in profits after the previous session’s big gains.

The S&P/TSX composite index closed down 252.46 points, or 1.7%, at 14,372.54.

All 10 of the TSX main groups ended lower.

The financials sector sagged 2% on renewed credit fears, after big U.S. banks Citigroup and Bank of America were hit by broker downgrades.

Bank of Montreal fell $1.21, or 1.9%, at $61.79 while Toronto-Dominion Bank dropped $1.46, or 2.1%, to $69.89.

A fall in commodity prices also weighed on the market, after oil and gold both reached record peaks in Wednesday’s session.

TSX energy issues fell 1.1% on Thursday as crude fell $1.04 to settle at US$93.49, after hitting a record high above $96 overnight.

Suncor Energy was down $2.44, or 2.4%, at $101.01 and Petro Canada fell $1.17, or 2.2%, to $53.33.

Gold retreated from its 28-year high to fall to US$788.90 an ounce, sending the resource-laden materials sector down 3%.

Barrick Gold dipped $1.61, or 3.8%, to $40.30 the day after the company posted a 15% decline in third-quarter profit.

Profit taking failed to hit the junior S&P/TSX Venture composite index. It dipped just 3.94 points, or 0.13%, to 3,131.68.

The Canadian dollar fell 0.73 of a cent to US105.12¢.

In New York, financial stocks dragged Wall Street sharply lower on Thursday, wiping out the previous day’s Fed-fueled gains, after brokerages downgraded Citigroup and Bank of America, sparking fears of more fallout from the credit crisis.

The Dow Jones industrial average sank 362.14 points, or 2.60%, to end at 13,567.87.

The S&P 500 dropped 40.94 points, or 2.64%, to 1,508.44.

The Nasdaq composite index fell 64.29 points, or 2.25%, to 2,794.83.