Canadian Stocks Slide Amid Tech Sector Slump

(RTTNews) - Reversing two consecutive sessions of gains, Canadian stocks moved lower on Thursday after technology stocks tumbled in the U.S., leading to a spill-over effect among Canada's IT sector stocks. Gains in energy sector due to a jump in crude oil prices limited the losses.

After opening higher than yesterday's close, today the benchmark S&P/TSX Composite Index gave ground early in the session to trade negative through the rest of the session before settling at 33,016.13, down by 159.94 points (or 0.48%).

Six of the 11 sectors posted gains today, with the energy sector leading the pack.

The recent surge in spending by technology companies in the U.S. focused on Artificial Intelligence has unnerved investors.

Today, the U.S. tech sector tumbled, revealing that traders are willing to bet on AI spending only if it results in strong growth.

A ripple effect was seen in Canada, with the IT sector slumping to drag down the index.

U.S. President Donald Trump announced via his social media platform that U.S. forces are prepared to severely attack Iran if the nation does not agree to negotiate over its nuclear program.

As U.S. forces close in near Iran, Trump warned that Iran was running out of time. However, Iran responded negatively, stating it was ready to strike back.

Catapulting crude oil prices, the simmering Middle East war-threat curtailed investors from making any big bets.

Canadian Prime Minister Mark Carney is visiting India in the first week of March to kick off negotiations for a Comprehensive Economic Partnership Agreement.

Carney is reportedly striking deals with India on uranium, energy, minerals, and Artificial Intelligence.

Responding to the recent rift between Carney and Trump in an interview with CNBC, the U.S. Treasury Secretary Scott Bessent asked Carney not refrain from "virtue signaling" when the Canada-United States-Mexico free-trade pact is coming up for renewal around July 2026.

Formal negotiations between Canada and the U.S. on CUSMA are yet to commence.

Bessent also added that when a technocrat becomes a politician, it does not work out very well, hinting at Carney's transition to politics after his stint as governor of the central banks in Canada and the U.K.

Last week, at the World Economic Forum, Carney criticized "American hegemony" and called for unification of "middle powers" which led to a verbal spat with Trump.

Later last weekend, both leaders spoke over the phone where Carney stood by his speech at Davos.

Data released by Statistics Canada today revealed that Canadian imports edged down 0.1% month-over-month to C$66.14 billion in November 2025.

Exports fell 2.8% month-over-month to C$63.9 billion in November following strong gains in September and October.

Yesterday, the Bank of Canada held interest rates steady at 2.25%. The central bank also downgraded its economic growth outlook for 2026 to 1.1% expecting only modest growth and 1.5% for 2027.

In a Reuters interview after the announcement, BoC Governor Tiff Macklem warned that the Canadian economy faces an exceptionally high risk of a "new" shock with geopolitical risks increasing.

In the U.S., a partial government shutdown threat is looming with current funding to expire by midnight tomorrow. Leaders of both parties are engaged in hectic parleys to extend government funding.

Major sectors that gained in today's trading were Energy (1.15%), Communication Services (0.64%), Financials (0.49%), and Consumer Staples (0.40%).

Among the individual stocks, Athabasca Oil Corp (4.40%), International Petroleum Corp (3.66%), Ces Energy Solutions Corp (3.26%), and Rogers Communications Inc (5.69%) were the prominent gainers.

Major sectors that lost in today's trading were Consumer Discretionary (0.48%), Healthcare (1.58%), Materials (3.02%), and IT (4.51%).

Among the individual stocks, Sylogist Ltd (15.16%), Celestica Inc (13.54%), Dye & Durham Ltd (10.13%), Coveo Solutions Inc (9.94%), and Vizsla Silver Corp (14.90%) were the notable losers.

5N Plus Inc (19.05%) and Canadian Pacific Kansas City Ltd (5.13%) were among the prime market-moving stocks today.