Toronto stocks lost ground Tuesday, dragged down by technology and mining issues.

The S&P/TSX composite index closed 34.33 points, or 0.26%, lower at 12,977.41.

All of the TSX 10 main groups were lower, following the benchmark index’s 182.06-point, 1.4%, rise on Monday.

The financial services sector edged 0.09% lower.

Bank of Nova Scotia gained up 8¢, or 0.2%, at $53.59, while Royal Bankfell 11¢, or 0.2%, to $57.20.

The energy sector lost 0.05% amid weak U.S. oil prices. Crude oil for May delivery fell 45¢ cents to close at US$59.25 a barrel on the New York Mercantile Exchange.

EnCana dropped 64¢, or 1.1%, to $55.29, while Suncor Energy fell 37¢, or 0.5%, to $81.45.

The resource-laden materials group also slid despite firmness in metal prices. Gold futures added US$4.70 to US$659 an ounce.

Goldcorp fell 52¢, or 1.8%, to $27.91, while Teck Cominco slid $1.60, or 2%, to $75.60.

Research in Motion Ltd. lost $3.99 to $152.60, while Nortel Networks Corp. fell 74¢ to $30.04.

Menu Foods Income Fund, struggling over a product recall, lost 15¢, or 3.61%, to $4.

The junior S&P/TSX Venture composite index gained 2.70 points, or 0.09%, to finish at 3,078.44.

News that Canada’s annual inflation rate in February rose to a higher-than-expected 2% sent the Canadian dollar sharply higher. The loonie closed up 1.25 to US86.16 — its biggest one-day surge since June 2006.

The inflation report set off speculation that interest rates may be headed higher.

On Wall Street, U.S. stocks rose as takeover activity in the technology sector reassured investors about equity valuations and offset apprehension about a monetary policy meeting beginning at the Federal Reserve.

The Dow Jones industrial average was up 61.93 points, or 0.51%, at 12,288.10. The S&P 500 gained 8.88 points, or 0.63%, to 1,410.94. The tech-heavey Nasdaq composite index rose 13.80 points, or 0.58%, to 2,408.21.

After the market close, Oracle Corp. reported earnings that beat Wall Street expectations, sending its shares higher.

Software maker Adobe Systems Inc. also reported slightly higher-than-expected results.