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TSX ends down 0.8% at 30,076.21

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Posts its lowest closing level since November 7

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Tech sector loses 2.1%

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Materials ends 1.4% lower as gold falls

(Updates at market close)

By Fergal Smith

TORONTO, Nov 17 (Reuters) - Canada's main stock index

fell to a 10-day low on Monday as worries about the

sustainability of the spending boom around artificial

intelligence offset an easing of domestic inflation pressures.

The S&P/TSX composite index ended down 250.25

points, or 0.8%, at 30,076.21, its lowest closing level since

November 7.

Wall Street also posted steep declines.

"It's obviously tech-related, AI spend-related. That's

what's driving the bus to the downside," said Allan Small,

senior investment adviser of the Allan Small Financial Group

with iA Private Wealth.

"The things that we were really bullish on is now being

called into question."

Nvidia, the world's largest company by market value, which

is at the heart of Wall Street's artificial intelligence trade,

is due to report after the bell on Wednesday.

The technology sector fell 2.1%, with shares of Lightspeed

Commerce Inc ( LSPD ) down 4.9%.

The materials group, which includes metal-mining shares, ended

1.4% lower as the price of gold fell on reduced

expectations of a U.S. interest rate cut next month.

Canada's annual inflation rate eased to 2.2% in October from

2.4% in September as gasoline prices dropped. Analysts had

forecast inflation at 2.1%.

"The modest upside surprise to headline inflation in October

was largely due to one-off factors," said Stephen Brown, deputy

chief North America economist at Capital Economics. "That lends

some support to our view that the Bank of Canada will eventually

feel comfortable in cutting interest rates further."

Three of 10 major sectors ended higher, including consumer

staples, which added 0.8%.