TORONTO — Stock markets lost ground in the U.S. and Canada on Thursday, weighed down by slumping AI stocks and gold prices, respectively.

Michael Greenberg, head of Americas portfolio management at Franklin Templeton Investment Solutions, said the moves in the market appeared to be more of a rotation than a broader growth scare.

The S&P/TSX composite index was down 76.05 points at 35,340.15. The resources-heavy basic materials sector led the overall index lower as the August gold contract was down US$59.70 at US$3,992.10 an ounce.

Canada’s main stock index has a higher concentration of materials compared to other indexes. As a result, Greenberg said the TSX benefited from higher gold prices last year.

“Obviously this year as gold prices have faltered for various reasons, it’s been a bit of a headwind, so that’s weighing on that part of our market for sure,” he said.

In New York, the Dow Jones industrial average was down 105.67 points at 52,552.97. The S&P 500 index was down 38.63 points at 7,533.77, while the Nasdaq composite was down 387.28 points at 25,881.95.

In the U.S. market, Nvidia fell 2.4 per cent, making it the heaviest weight on the index. Other AI winners also sank, giving back some of their stellar gains.

Micron Technology fell 5.6 per cent to shave its gain for the year so far below 199 per cent. Sandisk fell 12.6 per cent but is nevertheless up 494 per cent for the year so far. Western Digital sank 9.2 per cent but is still up 171 per cent for the year so far.

Tech stocks have been under pressure for weeks because of worries that AI companies’ share prices shot too high and that voracious demand for computer memory and processors may not be sustainable.

“The valuations in those names have gotten a little bit higher, so I think we’re seeing that somewhat being called into question on whether they’re going to generate enough return to justify the valuations that they have,” Greenberg said.

He said that AI stocks have become a big part of the overall market, “so when those names falter you see overall broad index challenges.”

For Brent crude, the international standard, oil prices are near their highest in a month because of worries that the war with Iran will mean oil tankers can’t use the Strait of Hormuz to carry crude from the Persian Gulf to customers worldwide.

Greenberg said he believes the scenario with the U.S. and Iran will likely continue toward de-escalation, but with periods of flare-ups “which I wouldn’t say fade into the background but become a little bit less important as we progress throughout the year.”

The price for a barrel of Brent crude briefly climbed above US$86 per barrel in the morning before erasing the gain and falling back to settle at US$84.23, down 0.8 per cent from the day before.

The September crude oil contract for North American benchmark West Texas Intermediate was down 84 cents US at US$78.28 per barrel.

The Canadian dollar traded for 71.24 cents US compared with 71.18 cents US on Wednesday.

This report by The Canadian Press was first published July 16, 2026.

— With files from The Associated Press

Companies in this story: (TSX: GSPTSE, TSX: CADUSD)

Daniel Johnson, The Canadian Press