The Toronto Stock Exchange's TSX Composite Index surged on Friday, October 9, driven by broad-based gains as investors digested weaker-than-expected jobs data. The index spiked 381.72 points, or 1.1%, to reach 35,527.10 by noon. The Canadian dollar dipped 0.24 cents to 70.01 cents U.S. Statistics Canada reported a decline of 68,000 jobs (-0.3%) in September, pushing the unemployment rate up to 6.5%. This data reduced the odds of an interest rate hike by the Bank of Canada at its next meeting to 27% from 40%, though investors still anticipate a 25-basis-point hike in December.
Among individual stocks, Aritzia shares jumped $18.28, or 15%, to $140.17 after the apparel retailer exceeded revenue and profit expectations for the second quarter. The TSX Venture Exchange also gained 10.15 points, or 1.2%, to 877.91, despite a weekly drop of 2.66 points. Most subgroups saw gains, with gold and materials each rising 2.7%, and information technology up 2.1%. The exceptions were telecoms (-2.9%), health-care (-0.7%), and consumer staples (-0.2%).
Across the border, U.S. stocks also climbed, led by tech shares. The Dow Jones Industrials rose 246 points to 51,477.64, the S&P 500 gained 34.66 points to 7,800.02, and the NASDAQ advanced 131.65 points to 27,324.99. SpaceX shares rose 2% on news of a deal to buy a nationwide spectrum portfolio, while AT&T, Verizon, and T-Mobile slid amid concerns over increased competition. Other tech winners included Lumentum (+6%) and Oracle (+5%).
In commodities, oil prices increased 54 cents to $92.03 U.S. per barrel, while gold prices added $52.30 to $4,209.30 U.S. per ounce. The 10-year Treasury yield rose to 5.26% from 5.23%.