Canada Stocks: TSX slides over 1% as US tech rout hits Canadian tech shares

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05/11/2026 16:31

By Anand Gopal R
Nov 5 (Reuters) - Canada's main stock index fell over 1% on Thursday, erasing the previous session's post-US midterm rally, as a selloff in Wall Street chip and AI-related stocks spilled over to Canadian technology shares.
The S&P/TSX Composite Index .GSPTSE was down 1.3% at 35,853.68 points as of 10:46 a.m. ET (15:46 GMT).
On Wall Street, the tech-heavy Nasdaq fell 4.8%, erasing its post-midterm gains, as Qualcomm slid 13.5% on weak smartphone chip sales, while Nvidia NVDA.O and Meta META.O dropped around 7% each
Canadian technology stocks .SPTTTK led sectoral declines, sliding 5.4%, with Celestica CLS.TO and BlackBerry BB.TO falling 14.6% and 7.2%, respectively
"We're seeing a bit of nervousness on the technology side," said Sadiq Adatia, chief investment officer, BMO Global Asset Management, noting the sell-off reflected sector rotation rather than a broader retreat from equities.
The pullback unwound Wednesday's gains, when Democratic victories in the US midterms lifted global markets on hopes of a stronger check on President Donald Trump's trade agenda, though experts say the party still lacks the votes to override his veto on tariffs
Energy .SPTTEN was the only sector in positive territory, rising 0.4% and limiting wider losses in the index as Brent crude gained nearly 2.8%. O/R
Among stocks, Gildan Activewear GIL.TO tumbled 24.7% and became the biggest loser in the index after quarterly sales missed estimates
Separately, economists are urging Canadian Prime Minister Mark Carney's government to restrain spending in its second budget, saying that despite windfall oil revenue, spending commitments could lead to bigger deficits in the coming years
Meanwhile, markets are now looking ahead to Friday's Canadian jobs report, with a Reuters poll forecasting 13,600 new jobs and a steady unemployment rate of 6.5%


 (Reporting by Anand Gopal and Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)
 ((AnandGopal.R@thomsonreuters.com))