Stocks in Canada Hit 8-week High

The S&P/TSX Composite Index fell 2% to close at 35,605 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 12.7%, while Shopify tumbled 5.4%, tracking losses among US chipmakers and hyperscalers. Major banks also traded lower as rebounding oil prices renewed concerns about energy-driven inflation. RBC down 2.3%, TD Bank shedding 3.6% and Scotiabank falling 4.4%. On the earnings front, Canadian Natural fell 1.4% despite beating third-quarter profit estimates, supported by stronger crude prices and production. Meanwhile, Nutrien gained 0.7% despite missing earnings expectations, as Democratic gains raised hopes of renewed US-Canada trade talks.

The S&P/TSX Composite Index fluctuated around 36,000 on Thursday, following Wednesday’s rally after the US midterm election results. The Democrats’ gains give them a stronger platform to challenge President Trump’s trade policies. However, they still lack the votes needed to override a presidential veto on efforts to reverse tariffs or revoke trade authorities. Among major exporters, Enbridge gained 1%, while Nutrien rose more than 0.5% despite missing profit expectations. In contrast, Magna International fell more than 0.5%, and BRP edged lower. Major banks traded mostly near flat as a rebound in oil prices renewed concerns about energy-driven inflation. Technology stocks underperformed, with Shopify falling nearly 5% and Celestica tumbling 6.5% amid a broader tech sell-off on Wall Street. Elsewhere, Canadian Natural rose 1.5% after beating third-quarter profit estimates, supported by higher crude prices and stronger production. Mining stocks also advanced amid higher gold prices.

TSX increased to 36549.00 Index Points, the highest since September 2026. Over the past 4 weeks, Canada Stock Market Index (TSX) gained 2.78%, and in the last 12 months, it increased 21.27%.