TORONTO (Reuters) — The Toronto Stock Exchange’s main index took its deepest dive since November 1 yesterday, as nervousness about the strength of the US economy prompted investors to pare last week’s record-breaking buildup.The S&P/TSX composite index closed down 88.63 points, or 0.7 percent, at 12,542.45. Seven of the TSX index’s ten main groups were lower, including the heavyweight energy and material groups, which ignored buoyant commodity prices.

The TSX hit a record high of 12,676.85 points just after market open, but then followed a global downward trend that saw European markets hit five-week lows and US markets fall broadly.

“We’re back on the what-about-the-US-economy bandwagon, it certainly seems, so there are worries about Christmas of course, but beyond that,” said Patricia Croft, chief economist at Phillips, Hager & North in Toronto.

The resource-heavy TSX seemed destined to retreat after advancing 2.1 percent last week, despite a rally by oil and natural gas futures and higher gold, silver and nickel prices.

Croft noted that the main index’s recent record highs heightened investor sensitivity. “There’s great indecision, so each anecdote or data point takes on additional importance in this environment,” she said.

Investors worried that a normally robust December could take a hit from weaker Christmas holiday sales after a disappointing outlook from retail giant Wal-Mart Stores Inc.

The Wal-Mart announcement “is causing everybody to scratch their heads as to just how strong this (US) economy is,” said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd. in Calgary, adding that the TSX “is catching a cold from the US at the moment”.

Canada’s big six banks ended lower as the financial services sector, which represents about one-third of the TSX index, experienced a second day of profit-taking and retreated 0.6 percent.

Bank of Montreal, which kicks off the banks’ quarterly reporting season on Tuesday, was down 20 Canadian cents, or 0.3 percent, at C$71.51.

Manulife Financial Corp. declined 38 Canadian cents, or 1 percent, to C$37.84.

Elsewhere, Research In Motion skidded C$7.29, or 4.5 percent, to C$153.31, the day’s biggest loss by weight.