TSX Takes Hit as US Jobs Data Fuels Rate-Hike Bets

The TSX Composite Index fell 0.33% on Friday to close at 36,513.80. The decline was led by material and oil stocks, which dropped by 1.2% and 1% respectively.

The slump in the TSX came as stronger-than-expected US jobs data fueled bets of an interest-rate hike by the Federal Reserve this month.

Data showed that US job growth accelerated sharply in August, with the unemployment rate holding steady at 4.1%. The release prompted traders to increase their expectations of a rate hike, with short-term interest-rate futures prices now implying about a 65% chance of a hike, compared to 55% before the jobs report.

Mike Archibald, portfolio manager at AGF Investments, said: 'It just reaffirms this idea that the US economy, despite some concerns, is still in a very good position. It will be very important in the next couple of weeks to see what happens with the data and how that evolves with respect to the expectations for market participants.'