Canada’s main stock exchange was higher on Friday, as investors braced for the release of key U.S. employment data and a potential U.S. high court ruling on the Trump administration’s sweeping import tariffs.
The S&P/TSX composite index gained 207 points or 0.64% at 32,585.83
Index ended Thursday up 0.8% at 32,378.64, recovering slightly from a decline in the prior session to near an all-time peak touched earlier in the week. A rise in oil and gold prices helped bolster shares in the commodity-heavy index.
Shares of MDA Space Ltd also surged after the group announced a deal allowing it to bid on future services needed by a program to enhance the U.S. homeland missile defense system.
The Canadian labor market capped off a volatile year on a tepid note, as a surge of job seekers pushed the unemployment rate higher despite a modest gain in full-time positions.
According to data released Friday by Statistics Canada, the economy added a negligible 8,200 jobs in December, a 0.0% change that signals a cooling period following a robust autumn rebound. The unemployment rate climbed 0.3 percentage points to 6.8%, largely driven by an influx of people entering the hunt for work rather than a wave of mass layoffs.
U.S. stocks hit record high
the blue-chip Dow Jones Industrial Average rose 260 points, or 0.5%, the benchmark S&P 500 index gained 0.8% and had it a record high of 6,974.27 and the tech-heavy NASDAQ Composite rose 0.9%.
The main averages on Wall Street notched a mixed close on Thursday. The benchmark S&P 500 was broadly flat, while the tech-heavy NASDAQ Composite shed 0.4% and the blue-chip Dow Jones Industrial Average gained 0.6%.
The indices are on track for a winning week, with the S&P 500 up about 0.9% week to date, while the Dow and Nasdaq have gained 1.8% and 1.1%, respectively.
U.S. jobs data awaited for Fed outlook hints
The U.S. economy added fewer jobs than anticipated in December, but the unemployment rate ticked lower, bolstering bets that the Federal Reserve will stand pat on interest rates later this month.
Nonfarm payrolls last month stood at 50,000, down from 56,000 in November. Economists had anticipated a reading of 66,000.
The central bank slashed rates multiple times last year in a bid to bolster a weakening labor market, even as inflation showed signs of stickiness.
Markets are currently pricing in two more 25-basis-point rate cuts in 2026.
Investors are also positioning ahead of the upcoming earnings season, which is expected to provide further insight into corporate health amid still-elevated borrowing costs and slowing global growth.
Potential tariffs ruling in focus
Investors are also awaiting a potential ruling by the U.S. Supreme Court later in the session on the legality of President Donald Trump’s tariffs.
At issue is Trump’s use of emergency economic powers enshrined in a 1977 law to impose the levies. Speaking at hearings in November, justices from both conservative and liberal justices voiced some skepticism around Trump’s claims.
Should the tariffs be reversed, the U.S. government could be forced to issue an estimated $150 billion in refunds for duties already paid by importers.
Crude set for weekly gains
Oil prices rose Friday, on course for another weekly gain, as developments in Venezuela and Iran threatened to disrupt global supplies.
Brent futures gained 0.9% to $62.57 a barrel and U.S. West Texas Intermediate crude futures rose 0.9% to $58.30 a barrel.
Both benchmark prices climbed more than 3% on Thursday, following two straight days of declines, putting the contracts on course for weekly gains of around 2%, the third in a row.
Civil unrest in major Middle Eastern producer Iran has added to concerns about global supply following the Trump administration’s seizure of Venezuela President Nicolas Maduro last week and his claims the U.S. will control the Latin American country’s oil sector.
President Trump said he will meet with executives from a host of large oil companies on Friday to discuss the fate of Venezuela’s vast oil reserves.
Gold holds steady
Gold prices were largely steady in European trading, while bullion remained on track for weekly gains underpinned by U.S.-Venezuela tensions.
Spot gold was largely flat at $4,478.33 an ounce by 07:08 ET. U.S. Gold Futures added 0.6% to $4,487.06.
Gold was on pace for a weekly gain of more than 3%, having surged at the start of the week after the U.S. launched the military operation in Venezuela and captured Maduro.
