Now that the results of the U.S mid-terms are in, attention has shifted to how those results are influencing stock markets on both sides of the border.
The Democrats’ strong showing in the 2026 U.S midterms could impact the direction of key policies, including U.S tariffs and trade measures. The transfer of power is leading to new opportunities for investments and businesses.
With Canada’s economy closely tied to the United States, the mid-term results are already affecting the stock market. The S&P/TSX Composite Index soared by 809.12 points (2.28%), to close at 36,341.40 on Nov. 4th.
Other notable stock gains include:
Photo Credit: Matt Johnson / CC
- Air Canada (AC.TO) is up 6.54%
- Colliers International Group Inc: up 8.01%
- WSP Global Inc: 5.37%
- FirstService Corp: 4.96%
- Agnico Eagle Mines Ltd: 3.30%
Sharmistha Nag, from the Lawrence Kinlin School of Business is cautious when asked about the changes in the market.
She notes the importance of the Democrats now having control of both chambers of U.S. Congress – the House and Senate – for the rest of Republican President Donald Trump’s term.
One area of concern for Nag is investments in Artificial Intelligence (AI) and technology. Following the Democrats’ win, the party shared plans to push for strict rules, enforcing safety standards and building stronger data center security.
Nag worries that “We may not see that AI boom given the restrictions that may be put in place.” Nag notes the potential restrictions will have impacts on Canadian investors, specifically those invested in technology.
The U.S midterms have created renewed hope and also uncertainty for investors.
