A surprise drop in U.S. retail sales sent equity investors rushing for the exits on Wednesday.

The S&P/TSX composite index sank 368.19 points, or 3.65%, to 9,709.51. It was the third straight loss for the benchmark index.

All 10 of the index’s main sectors were lower, with heavy losses in the energy and financial groups.

The energy group was down 5.2% as light sweet crude for June delivery moved 83¢ lower to close at US$58.02 a barrel on the New York Mercantile Exchange.

Inventories of crude fell by a surprising 4.7 million barrels last week, according to the U.S. Energy Information Administration. Analysts had been predicting an increase close to one million barrels.

In Toronto, EnCana dropped 4.49% to $60.18, while Canadian Natural Resources lost 6.3% to $58.18.

The TSX financial group was off 4.59%.

Royal Bank of Canada shed 4.69% to $41.26, while insurer Manulife Financial fell 5.75% to $21.30.

Investors sought a safe haven in gold pushing the June bullion contract ahead US$2 to close at US$925.90 on the Nymex, but the TSX gold sector was down 1.2%.

The junior S&P/TSX Venture composite index fell 24.74 points, or 2.29%, to 1,053.53.

The Canadian dollar fell 1.2¢ to finish at US85.04¢.

In New York, U.S. stocks tumbled following the release of gloomy retail sales report. Sales at retailers fell for a second straight month in April.

The Dow Jones industrial average slumped 184.22 points, or 2.18%, to 8,284.89. It was the biggest point and percentage drop for the Dow since April 20.

The S&P 500 lost 24.43 points, or 2.69%, to 883.92. The tech-heavy Nasdaq composite index gave up 51.73 points, or 3.01%, to 1,664.19.

IE