TORONTO – Strength in the technology sector helped Canada’s main stock index finish more than 200 points higher, while U.S. markets also rose.
Anish Chopra, managing director with Portfolio Management Corp., said that large U.S. tech stocks moved higher after concerns last week about the continuation of the AI boom.
“It appears that investors are more positive that this artificial intelligence capital expenditure path forward, which is having a big impact on parts of the economy, will continue,” he said.
“That’s given strength to some of the tech names, like Nvidia, which were under pressure last week.”
Chopra noted that the gains in the U.S. tech sector bleed over into Canadian markets, with Shopify Inc. adding the most points to the index, rising 6.18 per cent.
Big tech stocks ticked higher to lead the way. Amazon added 1.1 per cent following its 5.1 per cent drop last week, and Microsoft rose 0.6 per cent to recover some of its 1.2 per cent decline. While their moves were modest, they were still two of the strongest forces lifting the S&P 500 Monday because they’re two of Wall Street’s most valuable stocks.
Chopra said tech stocks were coming off a “tougher week,” but investors are seemingly more convinced on Monday “that the artificial intelligence boom will continue.”
“I think that’s partially due to the fact that the names are more attractive at lower prices. They sold off last week and given the more attractive valuations, investors have moved into that area,” he said.
The S&P/TSX composite index was up 210.63 points at 29,971.91.
In New York, the Dow Jones industrial average was up 68.78 points at 46,316.07. The S&P 500 index was up 17.51 points at 6,661.21, while the Nasdaq composite was up 107.09 points at 22,591.15.
The other tech sector news Monday was the US$55 billion acquisition of video game maker Electronic Arts by an investor group that includes Saudi Arabia’s sovereign wealth fund and a firm managed by U.S. President Donald Trump’s son-in-law Jared Kushner. If it clears regulatory approval, the deal would be the largest ever private equity-funded buyout.
Despite the gains in tech stocks, Chopra said there are some concerns regarding the U.S. economy, given the possibility of a government shutdown south of the border.
The U.S. has already had many such shutdowns, and they’ve made minimal waves in the past for the U.S. stock market and for the economy. But another shutdown could delay the collection and release of economic data, such as on jobs and inflation.
Without those reports, increasing uncertainty on Wall Street could make markets more twitchy.
“There’s a bit of uncertainty in the market, and that’s why you’re getting just a very modest up day. Generally, the markets don’t react much to U.S. government shutdown news because it tends to get resolved by the deadline, and that’s what you’re seeing,” Chopra said.
Elsewhere on the TSX, shares of Algoma Steel Group Inc. gained 3.27 per cent.
The Ontario-based steel producer will receive $500 million in federal and provincial loan assistance to help reorient its business to cope with the impact of U.S. tariffs. RBC analyst James McGarragle says the cash could help set the company up for the longer term.
The Canadian dollar traded for 71.83 cents US compared with 71.73 cents US on Friday.
The November crude oil contract was down US$2.27 at US$63.45 per barrel. The December gold contract was up US$46.20 at US$3,855.20 an ounce.
This report by The Canadian Press was first published Sept. 29, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX: ASTL)
