Canada's main stock index futures plunged on Tuesday, tracking a global riskoff mood as investors locked in profits, while the market awaited the country's budget proposal later in the day.
The TSX edged up 14.32 points to conclude trading Monday at 30,275.06
December futures lost 1% Tuesday.
The Canadian dollar dished off 0.12 cents to 71.03 cents U.S.
The benchmark has largely moved sideways since hitting a record high in mid-October and has risen 22.4% year-to-date.
Despite an overnight tech rally in Wall Street, sentiment remained fragile in Canada, where the downturn in the manufacturing sector showed signs of easing in October, though the PMI remained below the 50-mark, signaling continued contraction.
On the corporate front, e-commerce giant Shopify was set to report earnings later in the day. Its U.S.-listed shares fell 2.9% in premarket trading.
Industrial parts distributor Wajax reported third-quarter revenue that missed estimates late on Monday.
On the economic schedule, Statistics Canada noted that the November 4 releases of Canadian international merchandise trade and Canadian international trade in services for the September 2025 reference month will not occur as originally planned and will be released at a later date.
Statistics Canada sources its data on Canada's exports to the United States from the United States Census Bureau (USCB), and the partial shutdown of the U.S. federal government has affected USCB operations, resulting in data files not being transmitted to Statistics Canada.
ON BAYSTREET
The TSX Venture Exchange ducked 24.71 points, or 2.6%, Monday to 933.17.
ON WALLSTREET
Stock futures fell Tuesday, pressured by declines in artificial intelligence-related names like Palantir as investors grow increasingly concerned about valuations in the bull market-leading shares.
Futures for the Dow Jones Industrials plunged 283 points, or 0.6%, to 47,190.
Futures for the S&P 500 index flopped 69.25 points, or 0.2%, to 6,887.25.
Futures for the NASDAQ gave up 356.75 points, or 1.4%, to 25,746.50.
Palantir shares shed 7% in premarket trading even as the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its artificial intelligence business.
Palantir sees $1.33 billion in revenue for the current period, higher than the $1.19 billion expected by analysts, according to LSEG. Revenue in the prior quarter jumped 63%.
Palantir, which was up 173% this year through Monday, trades at more than 200 times forward earnings, so investors in that name and the other AI stocks expect the companies to keep ratcheting up their profit and revenue guidance by a large magnitudes in order to justify continuing to buy the shares. Palantir’s current P/E heading into Tuesday’s trading was approaching 700.
Oracle, which sports a current P/E of 60 and forward P/E of 35, shed 2% in premarket trading, chipping away at its 55% gain this year.
Chipmaker AMD, which has more than doubled this year and has a current P/E of 149, lost more than 2%. Other AI stocks such as Nvidia and Amazon fell more than 1% each in the premarket.
AI stock gains have driven the S&P 500's forward price-earnings ratio to above 23, near the highest levels since 2000
In Japan, stumbled 1.7% Tuesday, while in Hong Kong, the Hang Seng lost 0.8%.
Oil prices sank 79 cents to $60.26 U.S. a barrel.
Gold prices weakened $10.10 to $4,003.90 U.S. per ounce.
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