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Canada’s main stock index opened the week by reaching the lowest point in more than two years Monday as the influential energy sector was hurt by the price of oil dropping to its lowest level since the fall of 2017.

The S&P/TSX composite index lost 232.42 points to 14,362.65, the lowest level since September 2016.

The market hit an intraday high of 14,577.60 in morning trading as volume surpassed 264 million shares.

All sectors of the market were down, led by cannabis-heavy health care, followed by technology. Energy lost 2.45%, while industrials was off 1.8% and materials was down slightly despite higher metals prices.

The spot price of West Texas Intermediate lost 4%, falling below US$50. The February crude contract was down US$1.27 at US$50.20 per barrel and the January natural gas contract was down 29.9¢ at US$3.53 per mmBTU.

While excess supply has driven past fluctuations of crude prices, new economic data from China showing that the world’s second-largest economy continues to slow caused investors to fret about the weakening global economy, says Craig Fehr, Canadian markets strategist for Edward Jones.

“I think that combination of demand concerns and still high supply levels are what have really pushed oil prices to fresh lows,” he said in an interview.

In New York, the Dow Jones industrial average lost more than 2% cent or 507.53 points at 23,592.98. The S&P 500 index was down 54.01 points at 2,545.94, while the Nasdaq composite was down 156.93 points at 6,753.73.

Fehr said Monday’s falling market prices was less about any new news and more about investors dwelling on ongoing concerns about the U.S. trade dispute with China and the budding economic slowdown in North America and globally.

“This is one of these days where it’s kind of old news that seems to be the overhang on the market and so without any new news to calm investors’ fears we’re continuing to see equities trade lower.”

Fehr said it was an overreaction to suggest that the deterioration of markets signals a recession is coming a little sooner than anticipated.

“I think the sell off that we see in the markets in October and November and now here in December again is probably a reflection of just some pent-up anxiety in the market,” he said.

“In my opinion, the reaction we are seeing in the market right now is much more an emotional short-term reaction as opposed to an indication of something far more nefarious in the fundamental data.”

Investors will be watching closely on Wednesday for commentary from the Federal Reserve that accompanies an expected further increase in interest rates.

Fehr said the outlook is far more important than the rate decision because it will signal the central bank’s future moves and its assessment of the economy.

The Canadian dollar traded at an average of US74.63¢ compared with an average of US74.74¢ on Friday.

The February gold contract was up US$10.40 at US$1,251.80 an ounce and the March copper contract was down 0.8 of a cent at US$2.75 a pound.