Equities in Toronto fell for a second consecutive session on Tuesday as investors avoided risks ahead of U.S. economic data and earnings from AI bellwether Nvidia
The TSX lost 92.77 points to 29,983.44.
The Canadian dollar gained 0.25 cents to 71.36 cents U.S.
Prime Minister Mark Carney squeaked through his first major political test on Monday, as Parliament narrowly approved his debut budget - averting the prospect of a second election in less than a year.
The economic blueprint, aimed at steering Canada through a turbulent global trade environment, doubles the fiscal deficit to counter U.S. tariffs while funneling fresh spending into defense and housing programs. Investors were lukewarm when the plan first surfaced.
Financial Times reported that activist hedge fund Elliott Management has built a large stake in Barrick Mining, which puts it among the miner's 10 largest investors.
Barrick shares gained 40 cents to $52.38.
Telus Corp shares fell 85 cents, or 4.2%, to $19.22, after JP Morgan downgraded the telecommunication company to "underweight" rating from "neutral."
On matters macroeconomic, Canada Mortgage and Housing Corporation reported its seasonally adjusted annualized rate of housing starts dropped to 232,765 units from a revised 279,174 units in September. Economists had expected starts to fall to 265,000.
ON BAYSTREET
The TSX Venture Exchange handed over 0.14 points to 859.51.
Seven of the 12 TSX subgroups remained lower, weighed most by telecoms, off 1.4%, information technology, down 1%, and industrials, sliding 0.8%.
The five gainers were led by health-care, haler by 1%, energy, rumbling 0.5%, and gold, up 0.4%.
ON WALLSTREET
Stocks fell again on Tuesday after tech shares continued to slide on concern about valuations of artificial intelligence-related stocks and as bitcoin dropped briefly below $90,000, a sign of reduced risk-taking by investors.
The Dow Jones Industrials index surrendered 458.25 points, or 1%, to 46,131.99, putting it on pace for its fourth straight losing session, which would be its longest slide since August.
The S&P 500 faded 43.54 points to 6,628.87.
The NASDAQ subtracted 205.29 points, or 1%, to 22,502.79
The day’s moves were supported by AI chip darling Nvidia, which fell 2%, and fellow “Magnificent Seven” members Amazon and Microsoft. Those two pulled back 3% each.
Nvidia has fallen 9% this month leading up to the chipmaker’s third-quarter results due after Wednesday’s close. The company, which is reporting toward the end of a strong earnings season, has been at the center of a debate about the strength of the AI-powered market rally this year, as concerns have grown about pricey tech valuations and the soundness of AI fundamentals due to a boom in Big Tech debt offerings.
A big AI partnership announced Tuesday failed to lift related stocks like such deals have in the past. AI-startup Anthropic said it will spend $30 billion with Microsoft and, in turn, Microsoft and Nvidia will invest billions in Anthropic. Nvidia and Microsoft remained deep in the red following the deal.
Alphabet CEO Sundar Pichai told the BBC that part of today’s AI boom did have some “irrationality” and that no company “is going to be immune” if the bubble burst.
Bitcoin dropped below $90,000 on Tuesday, continuing its slide from a record $126,000 reached in early October. Many tech investors also have large cryptocurrency holdings so the decline raised worries that a bigger stock market drop may follow. Bitcoin was last trading just above $91,000.
Outside of tech, Home Depot shares declined after the home improvement reported an earnings miss and cutting its full-year outlook.
Prices for the 10-year Treasury edged up slightly, lowering yields to 4.12% from Monday’s 4.14%. Treasury prices and yields move in opposite directions.
Oil prices gained back five cents to $59.96 U.S. a barrel.
Gold prices stepped back $11.90 to $4,062.60 U.S. an ounce.
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