What Happened?
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- E-commerce Software company Shopify (NASDAQ:SHOP) fell 3.3%. Is now the time to buy Shopify? Access our full analysis report here, it’s free.
- Social Networking company Snap (NYSE:SNAP) fell 3.1%. Is now the time to buy Snap? Access our full analysis report here, it’s free.
- Lending Software company Upstart (NASDAQ:UPST) fell 3%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
- Virtual Events Software company ON24 (NYSE:ONTF) fell 3.2%. Is now the time to buy ON24? Access our full analysis report here, it’s free.
- Gig Economy company Upwork (NASDAQ:UPWK) fell 3.2%. Is now the time to buy Upwork? Access our full analysis report here, it’s free.
Zooming In On Shopify (SHOP)
Shopify’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Shopify is up 4.3% since the beginning of the year, but at $112.11 per share, it is still trading 13.3% below its 52-week high of $129.31 from February 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $1,157.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
