Tech stock ‘nervousness’ sends stock markets lower across Canada and the U.S.

TORONTO – A decline in technology stocks weighed on Canada’s main stock index on Monday, with the S&P/TSX composite index finishing more than 250 points lower as uncertainty was top of mind for investors.  

“There’s lots of nervousness still going on in markets and it’s even actually picking up a little bit more momentum on the negative side,” said Sadiq Adatia, chief investment officer at BMO Global Asset Management. 

Some of the areas of concern he pointed to include fears of a potential AI bubble and consumer spending going forward. Given the uncertainty, he said people are unclear as to what lies ahead in the next quarter and into 2026. 

The TSX was down 250.25 points at 30,076.21.

Canada’s technology sector was impacted by the broader market concerns around AI, Adatia said, noting that the companies that have done “exceptionally well” are seeing sluggish momentum.

“As valuations obviously have crept up, and when you have sell-offs, the higher valuation names tend to get hit, you’re seeing names like Shopify and others getting hit in Canada as well,” he said. 

Shopify Inc. shares fell 3.92 per cent on the day. 

Canadian investors also digested the latest inflation figures on Monday, when Statistics Canada said cheaper prices at gas pumps and grocery stores helped bring inflation down to 2.2 per cent in October.

Adatia said the inflation figures were “relatively tame.” 

“I don’t think inflation right now is anything that I’m too concerned about. I think both Canada and the U.S., it’s tame, it should still support rate cuts,” he said. 

The U.S. stock market lost ground on Monday as Nvidia and other big tech companies led a broader decline. The move lower follows two weeks of sharp swings that have largely kept major indexes in check following recent records.

In New York, the Dow Jones industrial average was down 557.24 points at 46,590.24. The S&P 500 index was down 61.70 points at 6,672.41, while the Nasdaq composite was down 192.51 points at 22,708.07.

Critics have been warning that the U.S. stock market could be primed for a drop because of how high prices have shot since April, leaving them looking too expensive. Critics in particular point to stocks swept up in the AI mania, which have been surging at spectacular speeds for years.

Adatia said the concerns around an AI bubble have stemmed from questions regarding the outsized level of spending. 

“They can’t put their finger on the benefit of that from a dollars and cents perspective. I think that’s giving some people some concern on that front,” he said. 

Nvidia was the heaviest weight on the market, as it’s often been in the last couple of tumultuous weeks. The chip company fell 1.8 per cent Monday, while losses for other AI winners included a 6.4 per cent slide for Super Micro Computer.

Investors will also be closely watching Nvidia on Wednesday when it will report how much profit it made during the summer. 

“Given AMD had good results, I’m optimistic that I think we’re going to get a better result coming out of Nvidia that could hopefully help stabilize what we’re seeing in the tech sector,” Adatia said. 

The Canadian dollar traded for 71.25 cents US compared with 71.30 cents US on Friday.  

The January crude oil contract was down nine cents US at US$59.86 per barrel. The December gold contract was down US$19.70 at US$4,074.50 an ounce.  

This report by The Canadian Press was first published Nov. 17, 2025.

— With files from The Associated Press.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:SHOP)