TSX slips as Shopify slump drags tech sector, investors eye U.S. midterms

Canada's S&P/TSX Composite Index slipped to 35,669.85 points, down 0.3%, as e-commerce platform Shopify fell 7.8% following third-quarter revenue that fell short of analysts' expectations. The decline was the largest drag on the benchmark, pulling the technology sector down 1.9%.

"It was the first time in, I think... in four years that they reported a lower revenue number than what the Street was expecting," said Michael Dehal, senior portfolio manager at Dehal Investment Partners, Raymond James.

Thomson Reuters also weighed on the market, dropping 6.6% amid concerns that higher AI spending could pressure profits.

"The equity markets globally are coming under a little bit of pressure as there are all kinds of questions over the sustainability of the AI boom," said Doug Porter, chief economist at BMO Capital Markets.

Defensive sectors outperformed, with healthcare up 1.9% and utilities up 0.4%. Brent crude fell nearly 1% after President Donald Trump announced the United States would end billions of dollars in annual military support to Israel after year-end.

Investors also awaited comments from Bank of Canada Governor Tiff Macklem before his appearance before a House of Commons finance committee.

In the United States, the S&P 500 added 0.3% while the Dow Jones Industrial Average slipped 0.6% and the Nasdaq rose 0.7%. Nvidia, Broadcom and Advanced Micro Devices posted gains that helped lift the S&P 500. Apple fell 1.8% after warning that higher memory-chip costs for AI data centers would compress margins, even though the company reported better-than-expected profit and revenue.

Palantir Technologies dropped 4.6% despite posting stronger profit, noting a surge in U.S. commercial revenue that rose 148% year over year.

Analysts highlighted that, historically, the S&P 500 has posted positive returns in the six months after U.S. midterm elections, though some market participants worry a Democratic sweep could bring tighter AI regulations. President Donald Trump, who remains in office, retains veto power over such measures.

Among the winners, Celanese rose 1.3%, DuPont gained 4.9% and Revvity surged 11.2% after beating earnings expectations.

U.S. job market data showed a rise in job openings, supporting a modest increase in the 10-year Treasury yield to 4.96%.

Oil prices continued to fluctuate, with Brent briefly above $107 per barrel before falling to $103.37.

International markets were mixed, with South Korea's Kospi down 3.6% and Australia's index up 0.3% after the Reserve Bank of Australia raised rates for the fifth time this year.