Shopify drop weighs on S&P/TSX composite on down day for North American markets
TORONTO –
North American markets ended the trading day in the red, with a double-digit decline in Shopify Inc. weighing on the technology sector of Canada’s main stock exchange and U.S. stock markets sank ahead of Wednesday’s scheduled interest rate decision from the U.S. Federal Reserve.
The S&P/TSX composite index closed down 131.80 points at 18,972.68, driven by weakness in the technology sector after Shopify announced that it would be laying off 10 per cent of its workforce because it misjudged the growth of the e-commerce sector.
The company’s share price fell by more than 15 per cent in late-morning trading but regained some of those losses to close at $40.69 per share.
“E-commerce is not performing as well as it was during pandemic lockdowns when people were forced to buy online,” Pierre Cleroux, vice-president of research and chief economist for the Business Development Bank of Canada, said…
