Both Shopify (SHOP.TO) and Kinaxis (KXS.TO) dropped for very similar reasons: investors became nervous about expensive tech stocks, analysts cut price targets, and the market shifted away from high‑growth names. Neither company is in financial trouble — this is mainly a sentiment and valuation reset.
Even though Shopify is a strong company, its stock fell because:
1. Tech stocks were hit broadly
Investors pulled money out of high‑growth tech companies. When this happens, Shopify usually gets hit harder because it’s one of the most expensive tech names.
2. Slower growth expectations
E‑commerce is still growing, but not as fast as during COVID. When growth slows, Shopify’s valuation gets questioned.
3. Analysts lowered price targets
RBC and others cut targets on several Canadian tech stocks, including Shopify, which pushed the stock down further.
Kinaxis is a supply‑chain software company with very steady business, but its stock fell because:
1. It was priced very high
Kinaxis trades at a very high P/E ratio (around 86–89), so even small concerns cause big drops.
2. It hit a new 52‑week low
Once it broke below key price levels, technical traders and algorithms sold more, pushing it down faster. Its 52‑week range recently fell to 139.10, far below its previous high of 212.45.
3. Analysts cut targets across Canadian tech
RBC lowered price targets on multiple Canadian tech stocks, including KXS, citing concerns about AI‑related disruption and slower growth.
🟦 The Simple Bottom Line
Nothing is fundamentally broken at Shopify or Kinaxis.
No bankruptcy risk.
The declines are mostly due to market psychology, valuation resets, and analyst downgrades, not business failure.
These companies still have strong revenue, customers, and long‑term prospects.
Shares of U.S.-listed rare earth miners jumped Monday after news that President Donald Trump is preparing a sweeping plan to build a strategic stockpile of critical minerals.
The proposal, known as Project Vault, would launch a first-of-its-kind strategic critical minerals stockpile designed for the U.S. private sector, according to a White House official. The plan pairs $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank, the person said. Trump’s move is aimed at cutting America’s dependence on China for materials essential to electric vehicles, defense systems and advanced technology.
MP Materials, the operator of the Mountain Pass mine in California, surged 6% in early trading Monday. USA Rare Earth and Critical Metals Corp. rallied 13% and 12%, respectively, as investors bet the initiative could accelerate domestic demand and government-backed financing for the sector.
Bloomberg News first reported on the proposal earlier Monday.
USA Rare Earth has already held discussions with Commerce Secretary Howard Lutnick, pitching its domestic mining and magnet assets to the federal government. Those talks would ultimately lead to a proposed deal that could provide the company with about $1.6 billion in funding, subject to certain conditions, and include a U.S. government equity stake.
The moves build on a more direct role Washington has begun taking in the sector. The Department of Defense struck a landmark agreement with MP Materials last summer that included an equity stake, price floor, and long-term agreement to buy a specific amount of rare earth minerals and magnets.
— CNBC’s Spencer Kimball contributed to this report.
A near 9-per-cent drop in copper prices in the last two days reflects a return to reality for a market whose recent surge to record highs had run ahead of fundamentals, analysts said – with more losses likely.
Weak demand, rising stockpiles, and the likelihood of higher supplies all suggested copper’s rally to record highs at US$14,527.50 a metric ton last Thursday was unsustainable, they say.
Prices had moved way beyond fundamentals, “pushed up by investors crowding into the market,” said Macquarie analyst Alice Fox. “We think the market was in an around 600,000 ton global surplus last year.”
Fox said copper prices are still too high, and that to fully reflect fundamentals, they should be below US$11,000 a ton.
At last week’s record, prices of the metal used to make wiring for conducting electricity were well above the level analysts say is needed to incentivise investment in new production in the coming years.
On Monday, prices hit a three-week low at US$12,414.50, a drop of 9 per cent in the two most recent trading sessions, with investors retreating after U.S. President Donald Trump’s appointment of Kevin Warsh as the next chair of the Federal Reserve pushed up the dollar higher.
The macro picture also undermines the case for copper bulls. Trump’s tariffs and trade wars have pressured manufacturing activity around the world over the past year.
Factory activity in some parts of the world expanded in January, offering policymakers some assurance the hit from higher U.S. tariffs has run its course for now, but the growth was from a low base and followed months of shrinking activity.
China’s Lunar New Year holiday in mid-February will also bring industrial activity to a standstill in the country which consumes more than half of global copper production estimated at around 26 million tons this year.
Much of the gain in copper prices last year was due to disruptions to mined supplies, including accidents in Indonesia and Chile. However, production ramp-ups at mines in Zambia and Mongolia are likely to mean higher supplies this year.
“While we forecast copper in a deeper deficit market year on year, we still do not see the market as historically out of balance,” said StoneX analyst Natalie Scott-Gray.
“And although supply risks do outweigh a demand slowdown… fundamentals certainly do not support copper at current levels.”
Another sign of weak demand are brimming stocks in London Metal Exchange, Shanghai Futures Exchange and Comex registered warehouses, which at more than 930,000 tons combined have more than doubled since August.
Gold prices were in freefall on Friday as traders locked in profits from recent gains. In addition, the naming of the next candidate for U.S. Federal Reserve Chair and today’s producer price data pushed the U.S. dollar higher, weighing on the yellow metal.
Front Month Comex Gold for February delivery nosedived by $604.50 (or 11.37%) to $4,713.90 per troy ounce. However, gold prices skyrocketed by $388.30 per troy ounce (8.98%) for this month and have increased for six consecutive months.
Front Month Comex Silver for February delivery also were in freefall by $35.747 (or 31.35%) to $78.290 per troy ounce. However, silver prices also skyrocketed by $8.1560 (or 11.63%) per troy ounce for this month, increasing for the ninth consecutive month.
In January, gold and silver prices soared by around 17% and 39% respectively.
Yesterday, Front Month Comex Gold for February delivery hit a new record closing high at $5,318.40 per troy ounce after eight consecutive sessions of gains. As a result, investors today opted to book profits.
The U.S. Fed held interest rates steady at the conclusion of its two-day meeting on January 28. The Fed’s economic outlook has diminished expectations of any near-term rate cuts. The Fed had instituted rate cuts thrice consecutively in late 2025.
U.S. President Donald Trump has been criticizing current Fed Chair Jerome Powell for keeping rates too high.
With Powell’s tenure coming to an end by mid-2026, Trump announced his intent to nominate Kevin Warsh, who served as a Fed governor from 2006 until 2011, as Powell’s successor. Warsh’s appointment requires Senate confirmation.
Economists are a bit “surprised” with Trump’s pick, as Warsh is a “hawkish leaning” banker, supporting higher interest rates in an inflationary environment.
The U.S. dollar index was last seen trading at 97.00, up by 0.72 (or 0.75%) today.
The Bureau of Labor Statistics data revealed that month-on-month producer prices rose 0.5% in December 2025, the largest gain in three months, accelerating from a 0.2% increase in November.
Year-over-year, producer prices rose 3.0% in December, unchanged from the previous month.
The month-on-month core producer prices (excluding food and energy) jumped by 0.7% from the previous month in December and on an year-over-year basis, core prices rose by 3.3%.
A funding bill passed by Congress last year to run the U.S. government is lapsing by midnight tonight.
After hectic parleys between Senate Democrats and Republicans and the White House, a deal has been reportedly struck to pass five bills to finance a large portion of the government spending except the Department of Homeland Security.
Recently, immigration officials fatally shot two U.S. citizens in Minneapolis, triggering public anger.
Reflecting on this, a few Democrats threatened to halt any funding that would include bankrolling the DHS, which was a sticking point in the negotiations.
Though today’s bill strips DHS funding, it has to pass back to the House from the Senate. The House is in recess, with a vote not likely to happen until Monday.
Hence, the likelihood of a partial shutdown at least for a brief period appears inevitable.
Despite Trump’s ultimatum to Iran to negotiate on a nuclear deal before time runs out or face severe attacks, Iran has refused to bow to U.S. pressure.
Yesterday, Iran’s army announced adding 1,000 new “strategic” drones.
With Iran’s neighbors pushing for diplomacy, tension still persists in the Middle East. Turkey has come forward to mediate a solution.
In Europe, Russia has consented to pause strikes on Ukraine until February 1 owing to Trump’s appeal.
Trump made the request to support Ukrainians who are facing a “harsh winter” with heating equipment made inactive after Russian strikes on energy installations.
Russia is yet to take positive steps on the U.S.-authored peace proposal though Ukraine’s President Volodymyr Zelenskyy is prepared to expedite the deal.
10 am ET: U.S. job openings and labor turnover survey
Earnings include: AMD, Pepsico, Pfizer, Chipotle Mexican Grill, Electronic Arts, PayPal, Clorox, Match Group
Wednesday February 4
Euro area consumer price index
S&P global services PMIs are released across the globe
815 am ET: U.S. ADP national employment report
Earnings include: Alphabet, Eli Lilly, UBS, CME Group, McKesson, Suncor Energy, Yum! Brands, Brookfield Asset Management, New York Times, Methanex
Thursday February 5
Euro area retail sales and Germany factory orders
Bank of England monetary policy meeting
830 am ET: initial jobless claims for previous week
10 am ET: Global supply chain pressure index
1225 am ET: Bank of Canada Governor Macklem speaks in Toronto
Earnings include: Amazon, Shell, ConocoPhillips, ArcelorMittal, Constellation Software, BCE, Telus, News Corp., Open Text, Boyd Gaming, Lightspeed Commerce, Canada Goose, Great West Lifeco, Saputo, Canaccord Genuity, Rogers Sugar, TMX Group
Friday February 6
Japan household spending
Germany industrial production and trade surplus
830 am ET: Canada employment report for January. Consensus is for 7,000 net new jobs, holding steady from the previous month, with the unemployment rate holding steady at 6.8%
830 am ET: U.S. nonfarm payrolls. Consensus is 65,000 net new jobs, ahead of December’s 50,000 new jobs, with the unemployment rate steady at 4.4%.
10 am ET: University of Michigan consumer sentiment
Earnings include: CAE, Canopy Growth, Philip Morris
Canada’s economic growth stalled in November as an expansion in services was offset by weakness in goods-producing industries, data showed on Friday, as Canada’s economy slows down after almost a year of tariffs and trade uncertainty.
Gross domestic product was flat month-on-month in November, after a 0.3-per-cent contraction in October, Statistics Canada said.
Analysts polled by Reuters had forecast marginal growth of 0.1 per cent.
U.S. President Donald Trump’s tariffs on steel, automotive, lumber, and aluminum have hobbled output in these sectors.
While the tariff malaise has largely not spread beyond these sectors, a recent Bank of Canada survey showed that business sentiment was subdued, investment was down, and companies expected layoffs.
On a preliminary basis, Statistics Canada said output was expected to edge 0.1-per-cent higher in December, though the agency cautioned the estimate could be revised.
November’s figures indicate an annual growth contraction of 0.5 per cent in the fourth quarter, undershooting the Bank of Canada’s most recent forecast of no growth in the final three months of the year, based on monthly GDP by industry data.
Two consecutive quarters of contraction would constitute a technical recession.
Canada’s economy is expected to have grown 1.3 per cent in 2025, Statscan said.
Final reported quarterly GDP numbers are based on income and expenditure and can differ from the estimate calculated from GDP by industry.
“The still sluggish momentum towards quarter end may be a concern, as monthly growth rates will need to accelerate for the economy to achieve the (Bank of Canada’s) near 2% MPR forecast for Q1,” Andrew Grantham, senior economist at CIBC Capital Markets, wrote in a note.
Services-producing industries, which account for roughly three-quarters of economic output, mainly drove growth in November.
Retail trade, transportation and warehousing and educational services were the top three performing sectors.
However, wholesale trade declined 2.1 per cent, its largest contraction since April last year, the statistics agency said.
The strength in services was offset by a 0.3-per-cent contraction in goods-producing industries, the third such contraction in four months.
Manufacturing output, which contributes over 8 per cent of GDP, contracted 1.3 per cent. The industry remains among the most exposed to trade uncertainty and U.S. tariffs and global trends.
Output of motor vehicles and parts manufacturing shrank 6.4 per cent owing largely to a global semiconductor shortage, Statscan said.
The drop in manufacturing was closely followed by the agriculture, forestry, fishing and hunting sub sector, which contracted 1.1 per cent, the agency said.
The Canadian dollar weakened 0.36 per cent to $1.3537 to the U.S. dollar, or 73.87 U.S. cents. Yields on the two-year government bonds were down 0.5 basis points to 2.407 per cent.
the performance of U.S. tech stocks does influence the share prices of Canadian tech names like Shopify Inc. Class A (SHOP.TO) and Kinaxis Inc. (KXS.TO), but the relationship isn’t mechanical — it’s driven by sentiment, index flows, and growth-tech correlation effects.
Here’s how U.S. tech performance typically impacts these Canadian tech stocks:
1. Market Sentiment & Risk Appetite
U.S. tech stocks (Nasdaq/S&P 500 Info Tech) often set global growth-tech sentiment: when big U.S. tech names rally (e.g., Apple, Meta, Microsoft, Nvidia), investors become more willing to buy growth-oriented tech stocks globally, including Canadian ones.
Conversely, when U.S. tech sells off, risk appetite declines and capital tends to rotate out of growth-y stocks like SHOP.TO and KXS.TO into defensive or value sectors.
→ Impact: SHOP.TO and KXS.TO often move in the same direction as U.S. tech indices, especially during broad tech rallies or drawdowns.
2. Correlation with U.S. Tech Indexes
Shopify’s shares are also listed on the Nasdaq (SHOP), and historically have shown meaningful correlation with U.S. tech benchmarks. When the Nasdaq or S&P 500 Info Tech strongly outperforms, Shopify often participates in that tech rally because it behaves like a global tech growth stock.
Kinaxis is a software/AI-related growth name, so it also tends to track broad tech sector moves — albeit usually less closely than Shopify because it’s smaller and more niche.
3. Leadership Flows & Index Inclusion Effects
Shopify was added to the Nasdaq-100 index, meaning index funds and ETFs tied to Nasdaq tech have to hold SHOP, boosting its demand when those funds attract flows.
When U.S. tech ETFs outperform and attract capital, some flows spill over into tech ETFs globally, supporting SHOP.TO and often smaller capped tech like KXS.TO too.
4. Earnings & Macro Sentiment Spillover
If big U.S. tech beats expectations — e.g., strong earnings from Apple, Meta, Microsoft — it tends to lift sector sentiment, improving valuations and multiples for tech growth peers globally.
That positive mood can spill into SHOP.TO and KXS.TO even if their own fundamentals or earnings are unchanged.
Example: Canadian tech stocks “zoomed past” tech benchmarks in years when U.S. tech was strong — the rally in U.S. mega-cap tech contributed to stronger performance in Shopify and broader Canadian tech sentiment historically.
5. Risk-Off Episodes & Valuation Compression
During periods where U.S. tech underperforms or growth stocks get repriced lower (e.g., higher interest rate fear, slowing earnings), then growth valuations fall globally.
Canadian tech names like SHOP.TO and KXS.TO can get hit harder than broader TSX because they are growth-oriented, higher-multiple stocks — similar to the way U.S. tech is affected in selloffs.
Example (Historical): When Shopify itself gave a weaker forecast and the TSX tech sector weakened, it dragged Canadian tech down significantly, echoing tech sentiment issues.
Summary Table: Link Between U.S. Tech ↔ SHOP.TO & KXS.TO
Driver
Shopify (SHOP.TO)
Kinaxis (KXS.TO)
U.S. Tech Rally
Often benefits as growth sentiment flows in
Typically positive, though less correlated than SHOP
Tech Selloffs
Can lead to share price weakness due to risk-off
Also sees pressure, especially on valuation multiples
Nasdaq Index Strength
Directly benefits via index inclusion effects
Indirect benefits via broader tech sentiment
Earnings Beats in U.S. Tech
Boosts sector sentiment → can lift SHOP
Provides positive backdrop but often company-specific
Macro Shifts / Risk Aversion
Can amplify volatility in Shopify
Often amplifies KXS volatility too
In short:
Canadian tech stocks like SHOP.TO and KXS.TO don’t move solely on U.S. tech performance, but they are strongly influenced by it through sentiment, flows, and risk appetite dynamics. When U.S. tech is outperforming, Canadian tech often follows suit, and when U.S. tech retraces or underperforms, Canadian tech stocks tend to retrace too. This linkage is strongest for Shopify due to its Nasdaq status and large market cap, and somewhat less tight for Kinaxis, though still meaningful given its growth tech characteristics.
High-Level Takeaways
Apple and Meta clearly beat street forecasts on both revenue and earnings, driving positive stock reactions (especially for Meta).
Microsoft beat estimates too, but market reaction was negative due to concerns about cloud slowdown and higher AI spending.
Tesla’s results were weaker relative to expectations, particularly deliveries — a key operational metric — and there’s no clear consensus that it beat on both earnings and revenue.
Imperial Oil Ltd. raised its quarterly dividend by 20 per cent and reported its fourth-quarter profit fell compared with a year ago as it saw lower oil prices. The company says it will now pay a quarterly dividend of 87 cents per share, up from 72 cents per share. Imperial says it earned $492 million or $1.00 per diluted share for the final quarter of 2025 quarter compared with a profit of $1.23 billion or $2.37 per diluted share a year earlier. On an adjusted basis, Imperial says it earned $1.97 per diluted share in its latest quarter, down from an adjusted profit of $2.37 per diluted share a year earlier. Revenue and other income totalled $11.28 billion, down from $12.61 billion in the fourth quarter of 2024. Upstream production in the quarter averaged 444,000 gross oil-equivalent barrels per day, compared with 460,000 a year earlier. Refinery throughput averaged 408,000 barrels per day, compared with 411,000 barrels per day in the fourth quarter of 2024.
Canadian National Railway Co. raised its dividend as it reported its fourth-quarter profit and revenue rose compared with a year earlier. The railway says it will now pay a quarterly dividend of 91.5 cents per share, up from 88.75 cents per share. CN says it earned $1.25 billion or $2.03 per diluted share for the quarter ended Dec. 31, up from $1.15 billion or $1.82 per diluted share in the same quarter a year earlier. Revenue totalled $4.46 billion, up from $4.36 billion. On an adjusted basis, CN says it earned $2.08 per diluted share in its latest quarter, up from an adjusted profit of $1.82 per diluted share a year earlier. CN’s operating ratio — a key measure of efficiency and profitability for a railway — for the quarter was 61.2 per cent, an improvement from 62.6 per cent a year earlier. This report by The Canadian Press was first published Jan. 30, 2026.
