TSX closes down 736 points as AI stock rout hits Toronto

The S&P/TSX composite index closed down 736.13 points, or 2.03 per cent, at 35,605.27 on Thursday, as a worldwide selloff in artificial intelligence stocks dragged Toronto lower and erased most of Wednesday’s post-election rally. Both TMX Money and Yahoo Finance showed the same closing level.

The index opened at 36,509.87, near the previous close of 36,341.40, and reached a high of 36,548.54 before sliding to a low of 35,513.65, TMX Money data showed. Volume was 389.7 million shares. The benchmark is still up 14.6 per cent so far this year, according to TMX Money. Wednesday’s 809-point gain followed the Democratic gains in the U.S. midterm elections, and the index was up about 0.6 per cent in the morning before the losses built.

The Associated Press reported that U.S. stocks tied to the buildout of AI data centres were overwhelmed on Thursday, with the S&P 500 down 3.9 per cent, the Dow Jones industrial average down 3.1 per cent and the Nasdaq composite down 5.2 per cent as of 1:46 p.m. ET. The Nasdaq is now more than 10 per cent below its October record. The AP said Nvidia fell 8.7 per cent and that investors have worried for months that data centre construction could slow because of high borrowing costs, and that Tuesday’s Democratic wins raised the possibility of government-forced pauses.

In Toronto, Celestica Inc. (TSX:CLS), the electronics maker tied to AI hardware, fell about 12.7 per cent to $288.43, Yahoo Finance data showed. Shopify Inc. (TSX:SHOP) dropped about 5.4 per cent to $201.23, while Suncor Energy Inc. (TSX:SU) fell about 4.1 per cent to $96.75. Royal Bank of Canada (TSX:RY) lost about 2.3 per cent to $285.86. Agnico Eagle Mines Ltd. (TSX:AEM) rose about 3.3 per cent to $264.85 as gold gained. Shopify’s slide comes days after it reported third-quarter revenue up 32 per cent to US$3.74 billion.

Brent crude rose 3.6 per cent to US$98.03 a barrel, the AP reported, recovering part of Wednesday’s drop of nearly nine per cent amid uncertainty over the war with Iran. West Texas Intermediate settled near US$90.67, up about 2.9 per cent, and gold was near US$4,108 an ounce, Yahoo Finance data showed. The Canadian dollar traded at about 71 cents US.

Statistics Canada releases its October labour force survey on Friday.

TSX figures are from TMX Money and Yahoo Finance. U.S. figures are the Associated Press’s afternoon readings, not final closes. Sector moves were not confirmed on two sources and are left out.

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This article is for information only and is not investment advice. Speak to a licensed adviser before making investment decisions.