Shopify slides and the TSX sinks to its lowest since early October as trade-deal hopes stay vague

Canada's main stock index fell sharply on Tuesday as e-commerce platform Shopify declined after its results, weighing on the technology sector while investors watched the U.S. midterm elections, Baystreet reported.

Shopify fell $14.34, or 6.6 per cent, to $203.30 by midday after its third-quarter revenue slightly missed estimates, according to Baystreet. By the close, Finimize reported, Shopify had slid about 8 per cent and the S&P/TSX Composite Index had fallen 0.8 per cent to 35,532 — its lowest close since October 8.

Thomson Reuters fell about 9 per cent even though its revenue rose, Finimize reported, as investors focused on whether heavier spending on artificial intelligence could squeeze profits in the near term.

The selling came as investors juggled two unknowns, Finimize reported: trade policy and interest rates. U.S. President Donald Trump said Tuesday the United States was close to a deal with Canada, but markets still had no specifics, and the timeline could stretch out, keeping businesses cautious about cross-border costs.

Bank of Canada Governor Tiff Macklem added to the uncertainty on Tuesday, telling the House of Commons finance committee that more interest-rate hikes might still be needed, Reuters reported. Macklem also said the government's current fiscal policy was not making it harder for the bank to fight inflation.

The Canadian dollar pulled back from a six-week high on Tuesday, Reuters reported, trading 0.1 per cent lower at 1.40 per U.S. dollar as oil prices fell and ahead of domestic jobs data due Friday. Analysts expect the October employment report to show the economy adding 13,600 jobs, according to Reuters.

What it means for Canadians

For Canadians, the day's message was caution in both directions: a market that punishes even a slight revenue miss, and a central bank that is not done warning about rate hikes. Anyone renewing a mortgage or holding Canadian tech stocks in a registered account felt both forces at once — and Friday's jobs report is the next data point that could move either one.