TSX Gives Back Record High

The S&P/TSX Composite slipped about 0.6% to below the 28,420 level on Tuesday, relinquishing the record highs struck before the long weekend as riskier, richly valued sectors cooled and investors returned to weigh fresh macro data points.

Tech led the weakness, Shopify fell more than 2%, as traders pared positions in growth names after a weekend that revived questions around stretched multiples for AI-exposed software and hardware companies and left room for profit-taking.

Outside tech, the market’s pullback reflected cautious positioning ahead of this week’s Canadian and US labour reports that will influence the Bank of Canada’s and Federal Reserve’s policy calculus.

Domestically, August’s manufacturing PMI improved to 48.3 from 46.1 in July but remained below the 50 threshold for expansion for a seventh straight month, underscoring persistent factory weakness that market participants link to softer external demand, trade frictions and elevated input costs.