Investment update

Weekly insight into the marketplace.

November 3 to 7, 2025

Tech-stock swings drove negative performance

On Monday, strong performance in the consumer cyclicals sector, along with rising gold and oil prices, helped Canada’s TSX eke out a small gain of 0.05%. The major U.S. stock markets were mixed, with the tech-heavy Nasdaq and S&P 500 finishing the day 0.46% and 0.17% higher, respectively, as shares of Amazon and Nvidia traded higher. The broader-based Dow fell 0.48%. The enthusiasm for big-tech stocks waned significantly on Tuesday, and all the Wall Street benchmarks closed with losses. The Nasdaq tumbled 2.04%, the S&P 500 fell 1.17% and the Dow lost 0.53%, as investor concerns over high-flying stock valuations mounted. Shares of software company Palantir, which have risen more than 150% this year, fell 8% even after releasing financial results that beat expectations. The cautious sentiment carried over to Bay Street where losses from the tech sector drove the TSX 1.64% lower. Conditions improved on Wednesday after reports that U.S. Supreme Court justices were raising serious questions about the legality of the Trump administration’s tariff regime during proceedings on the matter. The news raised investor hopes that tariffs could be rolled back. The Nasdaq led the U.S. indexes higher with a 0.65% advance after AI stocks rebounded. The Dow rose 0.48% and the S&P 500 gained 0.37%. The TSX bounced back 0.37% on strength from the materials sector and positive reaction to the previous evening’s federal budget release (see Federal budget 2025: In focus for details). On Thursday, investor attention turned to a report released by outplacement firm Challenger, Gray and Christmas. It showed that U.S. employers cut over 153,000 jobs last month – the most layoffs recorded in a single month since 2008, and the worst October since 2003. The Wall Street benchmarks all pulled back with tech once again leading losses: the Nasdaq retreated 1.90%, the S&P 500 fell 1.12% and the Dow shed 0.84%. The TSX suffered a 0.78% loss, weighed down by a 4.47% drop in shares of e-commerce giant Shopify. AI stocks continued to fall on Friday, keeping the Nasdaq in negative territory with a 0.21% daily loss. The Dow and S&P 500 managed to make small gains on the day, with support coming from news that U.S. lawmakers were considering a proposal to end the government shutdown. Better-than-expected Canadian employment data helped the TSX edge up 0.15%.

Trump tariffs case went to the U.S. Supreme Court

On Wednesday, the U.S. Supreme Court heard oral arguments in a case on the legality of the Trump administration’s global tariff regime. With his signature economic policy on the line, U.S. President Donald Trump posted on social media earlier in the week: “Tomorrow’s United States Supreme Court case is, literally, LIFE OR DEATH for our Country.” In August, a lower court ruled that President Trump did not have the legal authority he claimed to impose tariffs under the International Emergency Economic Powers Act. At Wednesday’s proceedings, Solicitor General D. John Saur presented the administration’s case, but faced tough questions and skepticism from liberal and conservative justices alike. “You want to say tariffs are not taxes. But that’s exactly what they are,” said liberal justice Sonia Sotomayor. The conservative chief justice, John Roberts, told Saur: “The vehicle (tariffs) is the imposition of taxes on Americans, and that has always been a core power of Congress.” The justices have committed to fast-tracking their decision.

Data showed Canada’s unemployment rate dipped in October

According to data released by Statistics Canada on Friday, the Canadian economy added 67,000 jobs in October, outpacing economist expectations for a second month in a row. The unemployment rate dipped from 7.1% to 6.9%. Part-time roles represented most of the gains as the number of full-time roles fell. Private sector payrolls grew for the first time since June. This builds on the surprise gain of 60,000 roles in September and supports the Bank of Canada’s view that interest rates are at an appropriate level to support the economy.