TSX Closes at Lowest Since October 8 as Shopify Falls, Macklem Testifies

Canada's main stock index closed at its lowest level since October 8 on Tuesday, November 3, 2026. The S&P/TSX Composite Index fell 268.81 points to 35,532.28. Shopify and Thomson Reuters dropped after their quarterly results and pulled the technology side of the index down. The close erased Monday's gain, when the index had risen 181.06 points to 35,801.09.

The Canadian dollar dipped 0.12 cents to 71.39 cents U.S. The TSX Venture Exchange fell 6.14 points to 794.69.

Macklem in front of MPs

Bank of Canada Governor Tiff Macklem testified before the House of Commons finance committee on Tuesday. He told MPs that the federal government's current fiscal policy is not making it harder for the central bank to fight inflation. He said the bank would only comment on government policy if it had become unsustainable, or if it was making it harder to return inflation to the bank's 2 percent target.

Macklem said further rate hikes may still be needed, and that decisions will be taken meeting by meeting because uncertainty is high, driven by trade and geopolitical risk. In remarks reported from the hearing, he said consumer price inflation is expected to rise to 3.5 percent by year-end, stay at or above 3 percent through much of 2027, and return close to the 2 percent target by the middle of 2028. The Bank of Canada raised its policy rate to 2.5 percent last week, its first increase in more than three years. Money markets are pricing in nearly one more 25-basis-point hike before the end of the year, according to LSEG data.

Why it matters

Two open questions sat over the Toronto market all day. The first is trade: President Donald Trump has said the United States is close to a deal with Canada, but no details have been published, and businesses on both sides of the border still cannot price cross-border costs with confidence. The second is rates: a central bank that just started raising again, an inflation path that stays above 3 percent through much of next year, and a governor who will not rule out more hikes. West Texas Intermediate crude traded near 95 dollars a barrel, flat on the day, after swinging earlier in the session.

What happens next

Friday brings the jobs reports on both sides of the border: Canada's Labour Force Survey and the U.S. nonfarm payrolls. Both will feed the December rate decisions in Ottawa and Washington. Until then, Toronto investors are trading the U.S. midterm results and the same waiting game on the trade deal that held the index down on Tuesday.