04:24 PM EST, 02/20/2025 (MT Newswires) -- The Toronto Stock Exchange was down for a second straight session Thursday on a falling appetite for tech issues, while economists debate whether the Bank of Canada will need to press the pause button on interest-rate cuts.

The S&P/TSX Composite Index closed down 112.08 points to 25,514.08. Among sectors, Information Technology, down 2.16%, is the biggest decliner. Healthcare is the biggest gainer, up 2.71%. followed by Base Metals, up 2.07%.

On the subject of inflation and interest rates, David Rosenberg, the founder of Rosenberg Research & Associates, noted Canada's IPPI, the comparable to the U.S. producer price index (PPI), rose 1.6% month-over-month in January, twice the consensus estimate for a 0.8%, rise, in what was the sharpest run-up since August, 2023. The year-over-year trend rose to 5.8% from 4.1% in December, the highest rate of producer-price inflation since December 2022.

Rosenberg noted that while energy was a culprit, the increases were broadly based, with the core rate excluding oil and energy rising 0.9% month-over-month, and up 6% annuallized, the fourth straight monthly rise in a row . "We have not seen a "6-handle" on ex. energy producer inflation since August, 2022," he said.

Rosenberg added, "This is not a price measure that generally influences the Bank of Canada, but rest assured that we will be hearing more cries from all corners of Bay Street that the BoC should begin to press the pause button. Even if that turns out to be the case, we still don't feel the Bank is quite done with its easing cycle just yet. Whether or not the Trump tariffs come to be, an economy gripped with a deflationary output gap through to late 2026 is an economy that will be in constant need of interest rate relief."

Despite the overall market weakness, Brian Belksi, Chief Investment Strategist at BMO Capital Markets, published his latest 'Canadian Strategy Snapshot' note and in it he urged stock pickers to "add dividend growth for stability."

While BMO believes much of the current heightened market anxiety is misplaced, its work shows dividend-based equity strategies are a highly effective way to combat rising market volatility and uncertainty. Furthermore, BMO said its work has consistently shown that one of its most favored investment strategies, dividend growth, can outperform in almost all market environments, making it an ideal strategy for investors seeking to add stability to their portfolios.

"In fact," Belski added, "since 1990 its analysis has shown that dividend payers typically outperform both the market and non-dividend payers when the VIX (a volatility index) is above the three-year average and when overall market volatility is rising. Additionally, dividend-based strategies can, will, and should meaningfully outperform during periods of market weakness, while maintaining pace with the overall TSX during periods of prolonged strength. As such, we believe investors can benefit by adding dividend growth names to their portfolios to mitigate market volatility without compromising on long-term performance."

Among individual stocks, Enbridge Energy's (ENB.TO) plans to build a protective tunnel around an aging pipeline that runs beneath a channel connecting two Great Lakes can continue, a Michigan appeals court ruled, according to a report from The Associated Press.

Of commodities today, oil closed higher despite a report showing another big rise in U.S. inventories last week. West Texas Intermediate crude oil for March delivery was last seen up $0.17 to US$72.42 per barrel, while April Brent crude was up $0.33 to US$76.37.

Gold traded at a fresh record high late afternoon on Thursday as the dollar moved lower and safe-haven demand remains high amid U.S. tariff threats. Gold for April delivery was last seen up $6.40 to US$2,952.50 per ounce, topping the previous record set on Tuesday of $2,949.00 per ounce.