The S&P/TSX Composite Index dropped more than 2%, slipping below 36,000 points, as a broad selloff in US semiconductor and AI-related names spilled over into Canadian technology stocks. The pullback wiped out the previous session’s post-midterm election rally, with Democratic gains in the US midterms heightening worries about tighter regulatory oversight on the rapid growth of artificial intelligence.
Celestica slumped 14%, while Shopify fell more than 5.5%, mirroring sharp losses in US chipmakers and hyperscalers. Financials also came under pressure: major banks traded lower as a rebound in oil prices reignited concerns over energy-driven inflation. RBC, BMO, and CIBC each declined about 2%, and Scotiabank and TD Bank shed more than 2.5%.
On the earnings front, Canadian Natural inched higher after posting third-quarter profits that topped expectations, supported by firmer crude prices and increased production. Nutrien rose about 1% despite missing earnings estimates, as Democratic advances in the US elections bolstered hopes for renewed US–Canada trade talks.
