S&P/TSX composite rises amid risk-off rotation while U.S. stock markets sink

The Toronto Stock Exchange Broadcast Centre is shown in Toronto on Friday. THE CANADIAN PRESS/Aaron Vincent Elkaim

TORONTO — Canada’s main stock index reversed losses from earlier in the day amid a risk-off rotation, while U.S. stock markets lost ground.

“If you were to look at just the headline index, the movement on the TSX would be like watching paint dry, a big yawn. But actually under the surface, there’s a lot of churn and rotation going on,” said Brian Madden, chief investment officer with First Avenue Investment Counsel.

“We’re seeing ongoing selling in some of the strong leadership groups that had underpinned a lot of the advance earlier this year, so tech and gold particularly.”

He added that at the same time, funds were flowing “strongly” back into some of the more defensive areas of the index.

• Real-time TSX market updates here

The S&P/TSX composite index was up 94.16 points at 29,982.98.

In New York, the Dow Jones industrial average was down 334.33 points at 46,590.41. The S&P 500 index was down 35.95 points at 6,699.40, while the Nasdaq composite was down 213.27 points at 22,740.40.

As Canada’s benchmark index saw a move away from riskier parts of the market, U.S. investors reacted to more corporate earnings.

Netflix helped drag the U.S. market lower after delivering a weaker profit for the latest quarter than analysts expected, dropping 10.07 per cent on the day.

The pressure is on the video streamer and on companies broadly to deliver solid growth in profits. That would help counter criticism that their stock prices shot too high following a 35 per cent romp for the S&P 500 from a low in April.

Madden, whose organization owns Netflix shares, stated the quarter was roughly in line with financial metrics.

“It was a bit of a noisy quarter, though. There was some confusion and perhaps some overreaction on the part of investors due to the fact that the reported operating income looked like it was less than expected,” he said.

“However, what we think a lot of people may be shooting first and asking questions later over is the fact there’s about a US$620 million expense that’s not entirely related to the current period, relating to a dispute with Brazilian tax authorities.”

Canadian investors also digested fresh earnings reports.

Teck Resources Ltd. shares lost 1.78 per cent after it reported a profit in its latest quarter compared with a loss a year ago as its revenue rose.

• S&P 500 market updates here

The December gold contract was down US$43.70 at US$4,065.40 an ounce.

Madden said he is still bullish on gold over the medium term for various reasons.

“Notable among those, gold is an anti-fiat currency, the original one. And with confidence in the U.S. dollar waning — the U.S. dollar is down against every single G10 currency year-to-date — gold is a logical alternative,” he said.

Madden also pointed out that central banks are still big buyers of the commodity.

The Canadian dollar traded for 71.45 cents US compared with 71.32 cents US on Tuesday.

The December crude oil contract was up US$1.26 at US$58.50 per barrel.

This report by The Canadian Press was first published Oct. 22, 2025.

Daniel Johnson, The Canadian Press. With files from The Associated Press