Canada's main stock index fell over 1% on Tuesday, tracking a global risk-off mood as investors locked in profits, while the market awaited the country's budget proposal later in the day.
The TSX crumbled 283.33 points to commence Tuesday trading at 29.991.73.
The benchmark has largely moved sideways since hitting a record high in mid-October and has risen 22.4% year-to-date.
Despite an overnight tech rally in Wall Street, sentiment remained fragile in Canada, where the downturn in the manufacturing sector showed signs of easing in October, though the PMI remained below the 50-mark, signaling continued contraction.
On the corporate front, e-commerce giant Shopify was set to report earnings later in the day. Its U.S.-listed shares fell 2.9% in premarket trading. In Toronto, the shares sank $4.05, or 1.7%, to $239.81.
Industrial parts distributor Wajax reported third-quarter revenue that missed estimates late on Monday. Wajax shares backtracked 17 cents to $24.70.
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 wilted 17.98 points, or 1.9%, to 933.17.
All 12 TSX subgroups were on the decline in the first hour, led by gold, down 2.2%, materials, off 2.1%, and energy, woozy 1.7%.
ON WALLSTREET
Stocks fell 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 lost 96.66 points early Tuesday to 47,240.02
The S&P 500 dropped 38.28 points to 6,813.69.
The NASDAQ plummeted 203.70 points to 23,631.02.
Palantir shares shed 7% even as the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its artificial intelligence business.
Palantir sees $1.33 billion in revenue for the current period, higher than the $1.19 billion expected by analysts, according to LSEG. Revenue in the prior quarter jumped 63%.
Oracle, which sports a current P/E of 60 and forward P/E of 35, shed more than 1%, chipping away at its 50% gain this year. Chipmaker AMD, which has more than doubled this year and has a current P/E of 149, lost more than 4%. Other AI stocks such as Nvidia fell as well.
AI stock gains have driven the S&P 500's forward price-earnings ratio to above 23, near the highest levels since 2000
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 48 cents to $60.57 U.S. a barrel.
Gold prices waned $58.50 to $3,955.50 U.S. an ounce.
