12:20 PM EDT, 09/30/2025 (MT Newswires) -- The Toronto Stock Exchange is down 119 points at midday with most sectors lower, after finishing sharply higher on Monday.

The healthcare sector, down near 3%, is the worst performer, with cannabis stocks all down.

Energy is down 1.3%, followed by telecoms, down 1%.

Markets are lower as a standoff over heath care and spending pushed the United States closer to federal government shutdown. If Republicans and Democrats in Congress don't come to an agreement to extend federal funding, the government will shut down just after midnight tonight, after which time thousands of federal workers would be furloughed or permanently laid off.

The Canadian government is paused today to mark the National Day For Truth and Reconciliation.

In other news, Deloitte Canada, in its Fall edition economic outlook, expects the Canadian economy to "limp along" in the third quarter but thinks the country can avoid a technical recession. Stronger gains are expected next year, boosted by lower interest rates, limited pass-through of tariffs to prices and government stimulus, the report said.