*

TSX down 0.5%

*

Communication, tech stocks decline

*

Cannabis firms gain after Florida Supreme Court decision

(Updated at 10:11 a.m. ET/ 1411 GMT)

By Purvi Agarwal

April 2 (Reuters) - Canada's main stock index is set to

snap its three-session gaining streak as communication services

and tech stocks, rattled by investor concerns around the timing

of the Federal Reserve's interest rate cuts, dragged down the

index.

At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 103.26 points, or

0.47%, at 22,081.99.

Communication services stocks led declines on the

index with a 2.7% slide. Integrated telecommunication service

provider Quebecor ( QBCAF ) pulled down the sector with a 4.1%

decline after brokerage BMO downgraded it to "market perform"

from "outperform".

Information technology stocks followed suit,

losing 1.7%. Crypto miners Hut 8 and Bitfarms ( BITF )

dragged the sector with a 13.2% and 6.1% decline tracking a

6.3%. fall in Bitcoin.

"This modest weakness is really driven by concerns that

the economic strength in the US and higher oil prices in the

last couple of days, could delay the Fed's rate cuts", said

Angelo Kourkafas, senior investment strategist at Edward Jones

Investments.

The energy and materials sectors were

the only outliers amid the broad sell-off with a 0.7% and 0.6%

rise, tracking an upward tick in gold, copper and oil prices.

Bond yield on the benchmark Canadian government bond

hit its highest since February 2024 in the session.

Data

suggesting strong economic growth in the U.S has investors

adjusting their bets on the timing of interest rate cuts in the

year.

"Now over the last couple of days, markets are pricing

in slightly less than what policymakers project, and that

re-calibration of expectations is triggering the pullback",

Kourkafas added.

In corporate news, cannabis firms Canopy Growth Corp ( CGC )

and Aurora Cannabis ( ACB ) rose 7.5% and 9.6% after

the Florida Supreme Court allowed voters to decide on the fate

of recreational use of marijuana in the U.S. state through a

referendum in November.