Despite weaker oil and precious metals prices, Canadian stocks staged a rebound on Friday as significantly worse-than-expected U.S. jobs data strengthened expectations that the Federal Reserve could take a more accommodative stance in the coming months. As a result, the S&P/TSX Composite Index climbed by 348 points, or 1%, to settle at 35,503 – marking its best single-day performance in over two weeks and snapping a four-session losing streak.
Despite weakness in some key sectors like healthcare and real estate, strong intraday gains in technology, industrial, and financial stocks drove the TSX benchmark higher.
According to the U.S. Bureau of Labor Statistics, nonfarm payroll employment increased by just 29,000 jobs in September, while the unemployment rate remained broadly steady at 4.2%. Although the weak hiring figures pointed to slowing labour market momentum, they also strengthened hopes that the Fed could have greater room to ease monetary policy.
Top TSX Composite movers and active stocks
Trekor Metals, Ero Copper, Teck Resources, and Lundin Mining were the top-performing TSX stocks for the day, with each climbing by at least 5.2%.
Shares of Canadian Pacific Kansas City (TSX: CP) also inched up by nearly 2% to $122.51 each after the railway giant posted record grain transportation volumes across Canada and the United States. In September, CPKC moved 2.9 million metric tonnes of grain and grain products in Canada and 2.5 million metric tonnes in the United States.
CPKC also set third-quarter records for both carloads and metric tonnes of grain in the two countries. Combined Canadian and U.S. grain volumes reached new records for both September and the third quarter, surpassing previous highs set in 2020. The strong grain transportation volumes supported investor sentiment toward CP stock.
In contrast, Allied Properties REIT, Extendicare, Exchange Income, and Air Canada slid by at least 3.6% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume data, Canadian Natural Resources, TD Bank, Suncor Energy, Enbridge, and Telus were the five most active stocks on the Toronto Stock Exchange.
TSX today
Crude oil prices went sideways in early Monday trading, but metals prices across the board moved higher, which could offer some support for the resource-heavy TSX at the open today.
While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. services purchasing managers’ index (PMI) figures this morning.
Investors will also watch the U.S.-Iran conflict, with diplomacy still stalled and tensions around the Strait of Hormuz threatening energy flows. Iran said it is reviewing Washington’s latest response while warning it remains prepared for renewed military confrontation.
Fresh attacks on shipping and reported Houthi strikes on Saudi energy infrastructure could keep crude prices volatile and TSX energy stocks in focus.
Canada-U.S. trade tensions also remain unresolved, with major sticking points still blocking an agreement.
Given these mixed signals, the TSX may remain sensitive to commodity price movements, bond yields, and geopolitical headlines today.