TSX Falls on Global Technology Selloff
The S&P/TSX Composite Index fell more than 2% to below 36,000 points as a selloff in US semiconductor and AI-related stocks spilled over into Canadian technology shares. The decline erased the previous session’s post-midterm election rally, as Democratic gains in the US midterm elections fuelled concerns about increased regulatory scrutiny of the rapid expansion of AI. Celestica plunged 14%, while Shopify tumbled more than 5.5%, tracking losses among US chipmakers and hyperscalers. Major banks also traded lower as rebounding oil prices renewed concerns about energy-driven inflation. RBC, BMO and CIBC fell around 2%, while Scotiabank and TD Bank lost more than 2.5%. On the earnings front, Canadian Natural edged higher after beating third-quarter profit estimates, supported by stronger crude prices and production. Meanwhile, Nutrien gained 1% despite missing earnings expectations, as Democratic gains raised hopes of renewed US-Canada trade talks.
The S&P/TSX Composite Index fell more than 2% to below 36,000 points as a selloff in US semiconductor and AI-related stocks spilled over into Canadian technology shares. The decline erased the previous session’s post-midterm election rally, as Democratic gains in the US midterm elections fuelled concerns about increased regulatory scrutiny of the rapid expansion of AI. Celestica plunged 14%, while Shopify tumbled more than 5.5%, tracking losses among US chipmakers and hyperscalers. Major banks also traded lower as rebounding oil prices renewed concerns about energy-driven inflation.
RBC, BMO and CIBC fell around 2%, while Scotiabank and TD Bank lost more than 2.5%. On the earnings front, Canadian Natural edged higher after beating third-quarter profit estimates, supported by stronger crude prices and production. Meanwhile, Nutrien gained 1% despite missing earnings expectations, as Democratic gains raised hopes of renewed US-Canada trade talks.