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TSX ends down 1.2% at 29,906.55

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Posts its lowest closing level since November 6

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Materials group falls 4.5% as copper prices decline

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Technology ends 2.6% lower

(Updates at market close)

By Fergal Smith

Nov 20 (Reuters) - Canada's main stock index fell to a

two-week low on Thursday, weighed down by declines in the

materials and technology sectors as Nvidia's ( NVDA ) earnings report

failed to allay doubts that the surge in AI-related spending by

companies will pay off.

The S&P/TSX Composite Index ended down 371.86

points, or 1.2%, at 29,906.55, its lowest closing level since

November 6.

Wall Street's main indexes also lost ground as early enthusiasm

driven by Nvidia's ( NVDA ) earnings faded with investors questioning

lofty valuations in the technology sector, while jobs data

clouded the outlook for further U.S. interest rate cuts.

U.S. employment growth accelerated in September, but the labor

market remained sluggish and failed to keep pace with new

job-seekers as employers dealt with fallout from import tariffs

and integrated artificial intelligence into some positions.

"There's been a lot of publicity about the billions and billions

of dollars going into capital expenditures without any concrete

evidence that there is going to be payback any time soon," said

Michael Sprung, president at Sprung Investment Management.

"If one assumes that gravy train is slowing down or will end

... then it's going to certainly affect both the need for

materials and technology."

The Toronto market's technology sector fell 2.6%,

with shares of electronics equipment firm Celestica Inc ( CLS )

down 9.5%.

The materials group, which includes metal mining shares,

ended 4.5% lower, as gold and copper prices

declined.

Nine of the 10 major sectors ended lower. The exception was

consumer staples, which added 0.9%.

It was helped by a gain of 1.4% for the shares of food

retail company Loblaw Companies Ltd. ( LBLCF )

Altus Group Ltd ( ASGTF ) was another bright spot. Shares of the

real estate services company rose 5.4% as the company provided

strategic updates at an Investor Day.