The Toronto Stock Exchange's S&P/TSX composite index ended down 102.04 points, or 0.5%, at 21,292.96, pulling back from its highest closing level in nearly seven weeks the previous day.
Wall Street's major indexes also closed lower as investors took profits, particularly in technology stocks after a three-day rally, while multiple Fed officials were out talking about inflation and interest rate hikes.
"Pressure on yields, pressure on tech and pressure on valuations at least in the short-term is a concern," said Matt Skipp, president of SW8 Asset Management.
"I'd be staying clear of big optimistic growth names trading at wild multiples of revenues."
The Toronto market's technology sector fell 2.7%. It included a 8.8% slide in the shares of Shopify Inc, which started the year with the highest market capitalization on the TSX but has since seen its valuation sink by C$51 billion ($41 billion)to C$167 billion.
The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%, while energy was down 0.6% as oil prices gave back some recent gains. U.S. crude oil futures settled 0.6% lower at $82.12 a barrel.
Among the sectors that advanced was consumer discretionary with a 1.9% gain. It was led by fashion retailer Aritzia Inc, which ended 18.9% higher after its quarterly results beat estimates.
Financials, the most heavily weighted sector on the TSX, rose 0.4%.
($1 = 1.2515 Canadian dollars)
(Reporting by Fergal Smith; Additional reporting by Anisha Sircar in Bengaluru; Editing by Sandra Maler)
By Fergal Smith
