* TSX ends down 0.2% at 19,942.70
* Tech extends prior day's decline
* Energy falls 0.8%; oil settles 1.7% lower
* TD Bank shares rise 1.4%
June 8 (Reuters) - Canada's main stock index fell on Thursday, adding to its previous day's decline, as oil prices dropped and investors continued to evaluate the Bank of Canada's move to restart its interest rate hiking campaign.
The Toronto Stock Exchange's S&P/TSX composite index ended down 40.99 points, or 0.2%, at 19,942.70.
Surprisingly strong household spending in the first quarter and stubbornly high core inflation were among the top reasons the Bank of Canada hiked rates after a four-month pause, Deputy Governor Paul Beaudry said.
On Wednesday, the central bank raised its benchmark rate to a 22-year high of 4.75%.
"We are expecting a July rate hike and this makes sense because the data has been coming in pretty strong and we do need to battle inflation," said Greg Taylor, chief investment officer at Purpose Investments.
Money markets see a roughly 60% chance of another rate hike next month and are fully pricing in further tightening by September.
The TSX lost ground even as U.S. stocks closed higher.
The technology sector fell 0.7% after falling 3.4% on Wednesday. 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.
Industrials lost 0.9%, while energy was down 0.8% as oil settled 1.7% lower at $71.29 a barrel.
In contrast, the materials group, which includes precious and base metals miners and fertilizer companies, advanced 0.6% as gold rallied.
Another bright spot was TD Bank Group. Its shares advanced 1.4% as CEO Bharat Masrani said he was confident the bank would resolve issues with regulators that led to the collapse of its planned $13.4 billion acquisition of regional lender First Horizon. (Reporting by Fergal Smith in Toronto and Ankika Biswas in Bengaluru; Editing by Shweta Agarwal and Jonathan Oatis)
