TSX extends losses as caution persists ahead of crucial earnings, data

By Avinash P

Canada's main stock index fell for a second consecutive session on Tuesday as investors avoided risks ahead of U.S. economic data and earnings from AI bellwether Nvidia.

At 09:40 a.m. ET, Toronto's S&P/TSX composite index TSX was down 0.25% at 30,001.31 points, after falling to a 10-day low the previous session.

Markets hit the brakes as investors braced for a flood of U.S. economic data and Nvidia's NVDA earnings on Wednesday — a litmus test for the AI boom. Fresh doubts over the staying power of artificial intelligence spending and fading hopes of an imminent Federal Reserve rate cut kept sentiment in check.

Canadian stocks have been shadowing Wall Street recently, barely flinching at homegrown data or Ottawa's fiscal plans.

Prime Minister Mark Carney scraped through his first big political hurdle on Monday, with Parliament narrowly passing his debut budget — dodging the drama of a second election in under a year.

The blueprint will double Canada's deficit to blunt U.S. tariffs and pump cash into defense and housing, signaling a gamble on growth over austerity. Investors shrugged when the plan first was announced, but October's cooling inflation of 2.2% gives policymakers breathing room.

"All technology revolutions create bubble-like stock price performance - but this bubble is still inflating at a healthy pace with no signs of popping anytime soon. Valuations, while expensive, still trade at discounts to earnings growth rates and overall AI market sentiment is mildly bullish and not euphoric," said James Demmert, chief investment officer, Main Street Research.

In corporate news, Financial Times reported that activist hedge fund Elliott Management has built a large stake in Barrick Mining ABX, sending the shares up 1.6%.

Telus Corp T shares fell 3.6% after JP Morgan downgraded the telecommunication company to "underweight" rating from "neutral."