Canada’s main stock index posted its biggest decline in 10 months on Wednesday, with the technology sector pacing broad-based declines, as the Federal Reserve signaled a slower pace of interest rate cuts.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 562.71 points, or 2.2%, at 24,557.00, its lowest closing level since Nov. 5.

U.S. stocks also posted large declines and bond yields jumped after the Fed cut interest rates by a quarter of a percentage point as expected and forecast two cuts next year, down from four in a previous projection.

“It is pretty shocking to see how quickly those 2- and 10-year rates went up right after the decision,” said Michael Sprung, president at Sprung Investment Management.

“I think what that’s telling us is the market is much more in fear of possible inflation coming than the Fed might like to contemplate at this point in time.”

Canada‘s 10-year yield jumped 8.2 basis points to 3.224%, tracking the move in U.S. Treasuries.

All ten major sectors ended lower. Technology declined 4.5%, with e-commerce company Shopify Inc down 7.3%.

The materials group, which includes fertilizer companies and metal mining shares, fell 3.5% as gold and copper prices fell.

The price of oil gave back some of its earlier gains, settling 0.7% higher at $70.58 a barrel. Energy ended 1.9% lower and heavily weighted financials dropped 2%. (Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Shounak Dasgupta, Mohammed Safi Shamsi and Alistair Bell)

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