TSX Slides as Tech Stocks Retreat Following Microsoft’s Disappointing Outlook

The Toronto Stock Exchange (TSX) reversed early gains and closed lower on January 29, 2026, dragged down by a tech sector selloff after Microsoft issued a weaker-than-expected revenue forecast. Microsoft (MSFT) projected Q2 cloud growth below analyst estimates, triggering a 4.2% drop in its shares after hours and spilling over into Canadian tech names like Shopify (SHOP), which fell 5.1%. The S&P/TSX Composite Index ended down 1.3% at 21,450. Broader market sentiment soured despite strong morning momentum fueled by energy and financials. Investors are now reassessing tech valuations amid slowing enterprise spending. “Microsoft’s guidance is a red flag for global IT demand,” said Lena Cho, chief strategist at Veritas Capital. U.S. Nasdaq futures also dipped 1.8% in late trading.