US Jobs Report Sends Canadian Markets into a Slump

A strong US jobs report sent shockwaves north of the border on Friday, causing Canada's TSX to dip as investors quickly priced in a higher chance of a Federal Reserve rate hike later this month.

The data, released on Friday, showed hotter labor numbers that tend to make investors think the Fed will keep rates higher for longer due to a resilient economy keeping inflation pressure alive.

As a result, short-term interest-rate futures moved to imply about a 65% chance of a hike this month, up from roughly 55% beforehand.

This increase in rate-hike odds had a ripple effect on Canada's markets, with the TSX's most economically sensitive groups taking the hit. Materials slid as gold and silver fell, and energy dropped alongside softer oil prices.