North American markets closed lower Wednesday as fresh concerns about U.S. inflation offset a series of solid profit reports. Toronto’s S&P/TSX index finished down 37.59 points, or 0.40%, at 9,378.11.

Energy stocks led the decline with a 1% drop, while the materials group followed closely with a slide of 0.8%.

Seven of the 10 main TSX groups ended lower.

Even a U.S. government report the showed a surprise drop in crude and gasoline stockpiles ahead of peak summer driving demand could not keep investors from pocketing profits after recent gains in the energy sector.
The May contract for light sweet crude on the New York Mercantile Exchange – which expired Wednesday – was up 15 cent to US$52.44 a barrel. The June contract rose 46¢ to US$54.03.

In Toronto, EnCana was the biggest drag on the index, falling $1.40, or 1.69%, to $81.35. Shares of Suncor Energy gave back 86¢, or 1.8%, to close at $45.84.

Husky Energy Inc. moved 14¢ higher to $37.00 after it said it is considering selling its oilsands arm in a deal that could be worth more than $4 billion.

The junior S&P/TSX Venture composite index edged 6.94 points lower, or 0.40%, to 1,735.44.

On Wall Street, the Dow Jones industrial average tumbled 115.05 points, or 1.14% to 10,012.36.

The tech-heavy Nasdaq composite lost 18.60 points, 0.96% to 1,913.76 and the S&P 500 index was down 15.28, or 1.33%, at 1,137.50.

Losses gained momentum during the afternoon after the U.S. Federal Reserve reported in its so-called Beige Book that “upward price pressures have strengthened” as a result of higher energy costs.

Inflation concerns were already front and centre after data showed U.S. consumer prices jumped 0.6%in March, the biggest surge in five months. Core prices, excluding energy and food, rose by a worrisome 0.4% in March, double what economists had expected.