(Updates at market close)

By Fergal Smith

TORONTO, Oct 29 (Reuters) - Canada's main stock index

fell on Wednesday as the Bank of Canada cut interest rates to

support a faltering economy and investors worried that an

upcoming federal budget could show hefty deficit spending.

The S&P/TSX composite index ended down 274.90

points, or 0.9%, at 30,144.78.

The Bank of Canada signaled an end to its interest rate cutting

cycle after lowering its benchmark rate to a three-year low of

2.25%, and cut its 2025 growth forecast to 1.2% from 1.8% in

January.

"The worrying thing is (interest rates) were cut because our

economy is weakening as this trade dispute continues" with the

United States, said Michael Sprung, president at Sprung

Investment Management. "The other thing that is really on

investors' minds in Canada is the budget next week, rumors have

it that it could be an extremely high deficit again."

Canada is due to present its federal budget on Tuesday.

Economists forecast the government's fiscal deficit for the

2025-26 fiscal year will be between C$70 billion ($49.91

billion) and C$100 billion, a massive jump from the projected

C$43 billion for the fiscal year that ended March 2025.

The U.S. benchmark S&P 500 finished close to flat after the

Federal Reserve cut interest rates but Fed Chair Jerome Powell

said another rate cut in December is far from assured.

Consumer staples posted the biggest decline among

the 10 major sectors, falling 3.7%.

Technology lost 1.7%, with shares of Constellation Software

Inc ( CNSWF ) down nearly 8%.

Industrials declined 1.6% and heavily weighted

financials ended 1.3% lower.

Energy was a bright spot. It added 1% as the price

of oil settled 0.55% higher at $60.48 a barrel.

The materials group, which includes metal-mining

shares, also notched gains, adding 0.3%, as copper prices

rose.

($1 = 1.4024 Canadian dollars)