Equities in Canada’s largest centre felt around for the bruises Tuesday, as resource and tech stock hurtled earthward on general listlessness in the economy.
The TSX gave up 497.24 points, or 1.6%, to end Tuesday at 29.777.82.
On the corporate front, e-commerce giant Shopify shares sank $15.73 or 6.5%, to $227.73. Sylogist doffed 45 cents, or 7.1%, to $5.85.
Gold stocks were also beaten down, with Aya Gold & Silver sinking $1.29, or 8.3%, to $14.18, while New Gold dipped 92 cents, or 9%, to $9.31.
Other resources were punished, too, as First Majestic Silver slid $1.31, or 7.5%, to $16.28, while Endeavour Silver let go of 91 cents, or 7.9%, to $10.57.
Consumer staples proved the only gaining group, with George Weston ahead 97 cents, or 1.1%, to $86.28, while Empire Company captured 64 cents, or 1.3%, to $48.84.
Industrial parts distributor Wajax reported third-quarter revenue that missed estimates late on Monday. Wajax shares changed direction by the close and gained 19 cents to $25.06.
Among other share moves, Thomson Reuters reported higher third-quarter revenue, while reaffirming its full-year 2025 guidance. However, shares of the content and technology company fell $8.21, or 3.8%, to $206.63.
Energy Fuels plunged $4.79, or 16.6%, to $24.01, while Pet Valu Holdings dropped $4.85 13.9%, to $29.95 after its third-quarter results.
Prime Minister Mark Carney is set to unveil his new budget that will roll out a major stimulus to wean the country off its reliance on the U.S. - even as economists warn it could deliver the largest deficit since the pandemic.
On the economic schedule, Statistics Canada noted that the November 4 releases of Canadian international merchandise trade and Canadian international trade in services for the September 2025 reference month will not occur as originally planned and will be released at a later date.
Statistics Canada sources its data on Canada's exports to the United States from the United States Census Bureau (USCB), and the partial shutdown of the U.S. federal government has affected USCB operations, resulting in data files not being transmitted to Statistics Canada.
ON BAYSTREET
The TSX Venture Exchange stumbled 44.3 points, or 4.8%, to 888.87.
All but one of the 12 TSX subgroups declined, led by gold and information technology, each faltering 3.9%, while materials slumped 3.5%,
The lone gainer proved to be consumer staples, up 0.1%.
ON WALLSTREET
Stocks fell on Tuesday, pressured by declines in artificial intelligence-related names like Palantir, as investors grow increasingly concerned about valuations in the bull market-leading shares.
The Dow Jones Industrials staggered 251.44 points to close Tuesday to 47,085.24.
The S&P 500 dropped 80.42 points, or 1.2%, to 6,771.55.
The NASDAQ plummeted 498.09 points, or 2%, to 23,348.64.
Palantir shares shed 9%, even after the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its artificial intelligence business. The stock, which has risen more than 150% this year, trades at more than 200 times forward earnings.
That means investors in that name and the other AI stocks expect the companies to keep ratcheting up their profit and revenue forecasts by large magnitudes to justify investors continuing to buy the shares.
Oracle, which sports a forward P/E of 35, moved 4% lower, chipping away at its almost 50% gain this year.
AMD, which has more than doubled this year, lost more than 2%. Other AI stocks such as Nvidia and Amazon pulled back as well.
AI stock gains have driven the S&P 500's forward price-earnings ratio to above 23, near its highest level since 2000. As those stocks have lifted the broader market to new heights in recent months, one expert opined that without a pullback, valuations are beginning to get “really stretched.”
Comments from chief executives at Goldman Sachs and Morgan Stanley added to the loss of confidence among investors Tuesday.
Overnight, Goldman’s David Solomon said it’s “likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months.”
Additionally, Morgan Stanley CEO Ted Pick said: “We should also welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect.”
Prices for the 10-year Treasury regained strength Tuesday, lowering yields to 4.09% from Monday’s 4.11%. Treasury prices and yields move in opposite directions.
Oil prices faded 67 cents to $60.38 U.S. a barrel.
Gold prices stumbled $65.60 to $3,948.40 U.S. an ounce.
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