A Canadian flag waves in Toronto’s Bay Street, the city’s main financial hub. (Photo: THE CANADIAN PRESS/Nathan Denette)
Canada’s main stock market saw a dramatic upswing on Wednesday, driven mainly by a powerful boost from Shopify’s impressive financial results. The S&P/TSX composite index climbed 350.79 points, closing at 27,920.87—its biggest leap in recent weeks.
The surge came as Shopify’s stock skyrocketed by over 21%, ending the day at $212.82—an increase of $37.66. The Ottawa-based e-commerce giant posted a remarkable quarterly profit of US$906 million, a massive jump from US$171 million during the same period last year. Revenue also spiked by 31%, offering strong signs of growth.
Investment manager Ian Chong from First Avenue Investment Counsel said Shopify’s performance was the main driver behind the TSX’s gains, explaining that the company alone makes up around 7% of the index’s total weight.
According to Chong, Shopify’s growth was powered by increased merchandise volume, tighter cost control, and solid expectations for the next quarter. “They’re gaining more merchants, expanding globally, and their products are being quickly adopted,” he explained.
Even the current trade tension between Canada and the U.S. didn’t faze Shopify. Company leaders assured investors during a conference call that their merchants have adapted well, with cross-border transactions between the two countries making up about 15% of their total business. That number has remained steady, suggesting minimal impact from the ongoing tariff disputes.
Meanwhile, U.S. markets also saw gains. The Dow Jones Industrial Average rose by 81.38 points, closing at 44,193.12. The S&P 500 gained 45.87 points to hit 6,345.06, and the Nasdaq shot up by 252.87 points to finish at 21,169.42.
Much of the U.S. market’s momentum came from large-cap tech stocks, especially those known as the “Magnificent 7.” Apple stood out, contributing nearly half of the S&P 500’s rise. Investors reacted positively ahead of Apple’s expected announcement with the White House, where the company revealed plans to boost its U.S. investment by another US$100 billion over the next four years.
That brings Apple’s total domestic investment to a hefty US$600 billion. Previously, Apple had committed to investing US$500 billion in the U.S. economy.
President Donald Trump has previously criticized Apple and CEO Tim Cook for shifting iPhone production to India as a workaround against tariffs on Chinese imports. However, Apple’s latest announcement was hailed as a major win for U.S. manufacturing. “Trump’s looking to chalk up more domestic victories,” Chong said. “Apple’s move could ease some political pressure.”
Also on Wednesday, Trump signed a new executive order placing a 25% tariff on India for its Russian oil purchases, pushing the total tariff burden on the country to 50%.
On the commodities front, the Canadian dollar rose slightly to 72.75 cents U.S., up from 72.54 on Tuesday. Crude oil fell by 81 cents to US$64.35 a barrel for the September contract, while gold slipped by US$1.30 to settle at US$3,433.40 an ounce.
