By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell on Thursday, pulling back from a three-week high the day before, with the technology and industrial sectors leading declines after U.S. data showed tight labor conditions in the United States.
The Toronto Stock Exchange's S&P/TSX composite index ended down 81.99 points, or 0.4%, at 19,506.84, after posting on Wednesday its highest closing level since Dec. 15.
Wall Street's main indexes were also in the red as fresh evidence of a tight labor market and hawkish comments from Federal Reserve policymakers deepened fears of elevated interest rates for longer than expected.
"Once again, the Fed is doing what they can to keep markets from moving higher and that is obviously spilling over into our markets," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
Higher interest rates are a particular headwind for technology, reducing the value to investors of the future cash flows that companies in that sector are expected to produce.
Technology fell 1.8%, industrials lost 1.3% and heavily-weighted financials ended 0.8% lower.
Among the biggest decliners was precious metals miner Fortuna Silver Mines Inc. Its shares tumbled 10.4% after its Mexican subsidiary received an official notice that environmental clearances for its San Jose mine are being reassessed.
Energy was a bright spot, rallying 0.9%, as oil clawed back some of this week's losses.
(Reporting by Fergal Smith; Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by David Gregorio)