As the American stock market slows down, Canadian stocks are in a position to catch up to our friends down south. Last year, the S&P 500, America’s benchmark index, jumped over 22% while Canada's main index, the S&P/TSX Composite, saw a 5.7% gain. But now, dominant technology companies, known as the Magnificent Seven — that have been driving big gains in the American market and make up 29% of the S&P 500 — are starting to stumble. The latest earnings have missed the mark so far, with Tesla’s profits coming in much lower than analyst expectations, leading to a 12% drop in shares, and Alphabet, the parent company of Google, failing to impress as well. The lacklustre earnings caused the S&P 500 to have its worst day since 2022, dropping 2.3% in one fell swoop. On the flip side, the S&P/TSX, which has a smaller proportion of tech stocks, has climbed about 10% this year and about 4% this month. And now that Canada has two interest rate cuts under its belt, the S&P/TSX may get another boost, as rate cuts make borrowing costs cheaper for companies. This can make stocks more valuable because cheaper borrowing makes future profits more valuable today. Analysts now expect the S&P/TSX to climb 8.2% by the end of 2025, and some Bay Street bulls, like BMO Capital Markets’ chief investment strategist, Brian Belski, think it might even rise more than 8% for the rest of this year. Meanwhile, the S&P 500 is predicted to have a less than 1% gain for all of 2024, according to an average of analyst estimates.