A drop in the price of oil and increases in mortgage rates hurt the markets today. Toronto’s S&P TSX fell 94.88 to 8,317.12.

Several of Canada’s major banks began a round of interest rate hikes today, raising short- and long-term rates by one-tenth to three-tenths of a percentage point. The rate increases follow a decision by the Bank of Canada not to raise its key overnight rate, which remains at 2%.

However, economists expect the bank will begin raising rates later this year. Financial stocks also weakened. Bank of Montreal slid 53¢ to $53.34 and Scotiabank lost 42 to $35.18.

Meanwhile, the price of crude oil for July delivery fell 3¢ to U.S.$37.25 a barrel. That hurt TSX energy stocks. EnCana dropped off 68¢ to $53.76, and First Calgary fell 45¢ to $10.90.

The S&P CDNX joined in on today’s overall downward spiral, falling 21.93 to 1,549.32.

Profit-takers were out in force in the U.S. where stocks fell from month-long highs. The Dow Jones industrial average fell 64.08 points, or 0.61%, to 10,368.44. The Standard & Poor’s 500 Index closed down 10.88 points, or 0.95%, at 1,131.30. The Nasdaq Composite Index slid 32.92 points, or 1.63%, to 1,990.61.