S&P/TSX composite rises, U.S. markets mixed amid rotation away from tech stocks

TORONTO – Canada’s main stock index finished higher after losses earlier in the day, while U.S. markets were mixed amid a rotation away from technology stocks.

“The key rotation remains the dominant theme today and so far this year. We are seeing the balance of power shifting a bit as investors rotate towards the traditional old economy sectors and stocks, while particularly tech and software face pressures, and that is because of rising concerns about AI-driven competitive disruption,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

He said the TSX benefited from less exposure to technology stocks compared to U.S. markets on Wednesday.

The S&P/TSX composite index was up 182.95 points at 32,571.55.

In New York, the Dow Jones industrial average was up 260.31 points at 49,501.30. The S&P 500 index was down 35.09 points at 6,882.72, while the Nasdaq composite was down 350.61 points at 22,904.58.

Software stocks pulled back for a second day in a row.

“I think we are seeing some indiscriminate selling, if you will, in software stocks as the fear is that a lot of the business models will become obsolete because of artificial intelligence,” he said.

The most recent catalyst for pressure on software stocks appeared to come from U.S.-based Anthropic’s release of new AI capabilities, including tools for the legal industry, Kourkafas said. This spurred a theory that AI startups could disrupt some established players broadly, he said.

CIBC analysts Stephanie Price and Erin Kyle said in a note to investors Tuesday that January was one of the worst performances for software stocks on record.

“The selloff was driven by intensifying AI disruption concerns, while broader equity indexes finished the month roughly flat, with the TSX up 0.7 per cent and S&P 500 up 1.4 per cent,” the note said.

More than twice as many stocks rose within the S&P 500 than fell, but sinking technology names weighed on the index.

Meanwhile, gold and silver prices rose after paring bigger, early gains.

Gold added 0.3 per cent after earlier climbing back above the US$5,000 mark. It’s been swinging sharply after roughly doubling in price over 12 months.

The April gold contract was up US$15.80 at US$4,950.80 an ounce.

Silver’s price, which has been on an even wilder ride, rose 1.3 per cent.

Their prices had surged as investors looked for safer places to keep their money amid worries about everything from tariffs to a weaker U.S. dollar to heavy debt loads for governments worldwide. But critics said their prices rose too far, too fast and were due for a pullback.

The Canadian dollar traded for 73.16 cents US compared with 73.25 cents US on Tuesday.

The March crude oil contract was up US$1.93 at US$65.14 per barrel.

This report by The Canadian Press was first published Feb. 4, 2026.

— With files from The Associated Press.

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