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TSX Hits a 4-Week Low on Shopify and Thomson Reuters, Then Rebounds After the US Midterms: What It Means for Canada
- The S&P/TSX Composite fell 0.8% to 35,532.28 on Tuesday, November 3, its lowest close since October 8.
- Shopify fell about 8.7% after quarterly revenue and merchandise volume came in slightly below forecasts. Thomson Reuters fell about 9.9% as AI investment costs squeezed margins. Gold and silver miners also slid.
- On Wednesday, November 4, the index rose about 1.7% to roughly 36,134 in early trading as Democrats won both chambers of the US Congress.
- Trade Minister Dominic LeBlanc said the midterm results won't change Ottawa's approach and that he would speak with US officials in the coming days.
- The US has declined to renew CUSMA and opted for annual reviews instead. Tariffs of 50% on roughly $20 billion of Canadian goods imposed in August remain.
A rough Tuesday, a better Wednesday
Canadian stocks had a whiplash week.
On Tuesday, November 3, the S&P/TSX Composite fell 0.8% to 35,532.28, its lowest close since October 8, according to The Globe and Mail. On Wednesday, it bounced about 1.7% to roughly 36,134 in early trading after Democrats won both chambers of the US Congress (our report).
Why the TSX fell: two tech heavyweights
Shopify fell about 8.7% after its third-quarter results. Revenue grew about 32% to $3.74 billion, but that was a hair below forecasts, and gross merchandise volume and subscription revenue also came in short. Read our Shopify earnings breakdown.
Thomson Reuters fell about 9.9%. Revenue rose 10% and the company raised its growth outlook, but AI spending, severance and an acquisition squeezed margins in the legal business, and earnings per share missed. See our report.
Gold and silver miners were also among the weakest groups on Tuesday.
Because Shopify is one of the biggest companies on the TSX, a sharp drop in its shares alone can pull the whole index down.
Why it bounced: the US midterms
Canadian stocks joined a global rally on Wednesday after Democrats took the House and Senate. Investors read a divided Washington as less likely to deliver policy surprises, and Treasury yields and oil prices fell.
What a Democratic Congress means for Canada
The hopeful view: Trump's trade war with Canada became a campaign issue in states like Michigan and Maine. A Democratic House can use hearings and budget decisions to scrutinize tariffs.
The realistic view: Many tariffs rest on executive trade authority, so Congress can't simply cancel them, and any bill would face a presidential veto. Analysts warned that trade tensions could still flare.
Ottawa isn't changing course. Trade Minister Dominic LeBlanc called the results "interesting" but said they wouldn't significantly affect the government's focus. He planned to speak with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer in the coming days.
Where trade talks stand
- August: Canada walked away from talks. The US imposed 50% tariffs on roughly $20 billion of Canadian goods, and Canada retaliated.
- CUSMA: The US declined to renew the agreement and opted for annual reviews. LeBlanc called this "uncharted territory."
- Last week: Trump said the two sides were close to a deal. Carney said work remained and that Washington had dropped some demands (background).
What it means for Canadian investors
- Diversify beyond the TSX. The index is heavy in banks, energy and a few big tech names. A global ETF reduces the impact of one company's earnings.
- Exporters remain exposed. Steel, aluminum, autos and lumber are still most at risk from tariffs.
- The loonie: Lower US yields can support the Canadian dollar, which affects the value of your US holdings in Canadian-dollar terms.
What to watch next
- Thursday, November 5: Federal Budget 2026 (preview).
- Friday, November 6: Canada's October jobs numbers.
- Coming days: LeBlanc's calls with Lutnick and Greer.
Frequently asked questions
Why did the TSX fall on November 3, 2026?
The S&P/TSX Composite fell 0.8% to 35,532.28, its lowest close since October 8, mainly because Shopify and Thomson Reuters dropped sharply after their quarterly results. Gold and silver miners also weighed on the index.
How did the TSX react to the US midterm results?
Canadian stocks rebounded on November 4. The S&P/TSX Composite rose about 1.7% to roughly 36,134 in early trading as Democrats won control of both chambers of the US Congress, easing political uncertainty.
What do the US midterms mean for Canada-US trade?
Probably less than the rally suggests. Many US tariffs rest on executive authority, so a Democratic Congress can't simply remove them. Congress can hold hearings and apply pressure. Canada's trade minister said the results won't change Ottawa's approach.
What is happening with CUSMA?
The US declined to renew the Canada-United States-Mexico Agreement and chose annual reviews instead. That keeps the agreement in place for now but leaves its future uncertain each year.
Should Canadian investors worry about Shopify's drop?
Shopify is one of the TSX's largest companies, so its swings move the index. Its revenue still grew about 32%. A broad TSX ETF limits the impact of any single stock on your portfolio.
Primary sources
- The Globe and Mail — TSX hits nearly four-week low as Shopify slides
- Investing.com — TSX movers: gainers lead as gold miners slide
- Reuters via Investing.com — Canada says midterms won't change trade stance, sees talks with US officials
- CBC News — Carney has 'good conversation' with Trump on future of Canada-U.S. trade as midterms near
- PBS NewsHour — Carney reports progress in trade talks with U.S.
- CNBC — Shopify Q3 2026 earnings: Revenue, GMV miss estimates
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Nov 4, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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