Toronto stocks plunged on Tuesday, hit by disappointment over a smaller-than-expected rate cut by the Bank of Canada and by falling commodity prices.

Many analysts had expected the Bank of Canada to cut its key rate by 50 basis points and the 25-point cut that it announced failed to fulfill expectations.

The S&P/TSX composite index closed down 455.60 points, or 4.44%, at 9,795.80

All but one of the 10 main groups finished down, with only the healthcare sector posting a gain.

The resources-laden materials group fell 7.97% on falling prices for gold and base metals as fears that a global recession would cut demand.

The oil and gas sector dropped 4.9% as oil fell US$3.36 to US$70.89 a barrel, pressured by expectations that a global recession will also cut demand for oil.

Suncor Energy fell 5.5% at $28.83, while Imperial Oil droppoed 7.1% to $39.73.

Among financials, Royal Bank of Canada fell 3.1% and Bank of Montreal fell 2.8%.

The junior S&P/TSX Venture composite index fell 15.55 points, or 1.58%, to 969.39.

The Canadian dollar dropped 1.38¢ to close at US82.39¢, following the Bank of Canada’ decision to cut interest rates.

In New York, U.S. stocks fell on global recession fears and disappointing earnings results.

Tech bellwether Texas Instruments Inc warned of slowing sales for its widely used analog chips, while chemical company DuPont Co cut its full-year forecast.

The Dow Jones industrial average fell 231.77 points, or 2.50%, to 9,033.66, while the S&P 500 Index shed 30.35 points, or 3.08%, to 955.05. The tech-heavy Nasdaq composite index dropped 73.35 points, or 4.14%, to 1,696.68.

After markets closed, Yahoo Inc. reported that its quarterly earnings plunged 64%.

Apple Inc. posted profit of US$1.26 per diluted share, more than the US$1.11 Wall Street had anticipated. Apple’s revenue for the quarter was US$7.9 billio, down slightly from the US$8.1 billion analysts had expected.

IE