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This year’s Buy Canadian mantra is resonating well beyond the 49th parallel: Americans, too, are snapping up Aritzia Inc.’s ATZ-T -0.75%decrease popular items including the Super Puff jackets and Sweatfleece hoodies in U.S. stores as the Vancouver-based retailer’s expansion gains traction.

The success beyond Aritzia’s home base is stoking hopes for further gains in the United States and perhaps elsewhere – making the company stand out as an intriguing growth opportunity even as the share price rallies to fresh highs.

That’s right, the stock is no bargain. It is up nearly 64 per cent so far this year and holding onto a premium valuation for a retailer.

It trades at nearly 29-times estimated earnings from analysts over the next 12 months, compared with a forward price-to-earnings of about 14 for Lululemon Athletica Inc. LULU-Q +0.52%increase, according to data from S&P Global Market Intelligence.

For what it’s worth, that’s also more than Google-parent Alphabet Inc., which trades at less than 25-times estimated earnings.

Aritzia’s steep valuation might give some investors pause. But the company’s strong financial results in its most recent fiscal quarter, released last week, points to the sort of growth that makes the P/E ratio look far more acceptable – perhaps even reasonable.

Consider that net income increased by a dazzling 263 per cent over the same period last year, and handily exceeded analysts’ estimates.

While analysts had been expecting the retailer to report a profit of 39 cents a share after adjustments, Aritzia delivered 59 cents a share.

Revenue rose by 32 per cent over the same period. And comparable sales, or online sales and at stores open for at least one year, gained 21.6 per cent – which is nearly double the pace of growth that analysts had been expecting.

The results highlight Aritzia’s ability to navigate U.S. tariffs and the recent end to exemptions on imported packages valued under US$800.

The company accomplished this by expanding its distribution centre in Ohio to handle U.S. orders and accepting margins that are lower than they would have been with open borders.

More importantly, though, the retailer’s quarterly numbers underscored the long-term bullish case for sticking with the stock: Aritzia has established the sort of brand awareness among young and working-aged women that can drive lots more expansion.

“We see still a ton of runway in the U.S.,” Jennifer Wong, Aritzia’s chief executive officer, said during a conference call with analysts last week.

There are now 68 Aritzia boutiques in the United States. The company is reopening its flagship store in Manhattan, and is on track to open six additional stores over the next couple of months in Denver, Miami, Minneapolis, Pittsburgh and Scottsdale.

You can understand why there is so much interest in the United States. U.S. stores and e-commerce activity generated 60 per cent of sales in the most recent quarter. U.S. sales in the fiscal second quarter increased by 41 per cent over the same period last year, compared with 34 per cent growth in Canadian sales.

Over the long term, the U.S. footprint could expand to something closer to 200 locations, on top of a rising e-commerce channel. That is a big increase for what is essentially a mid-sized company worth about $10-billion, based on the combined value of its outstanding shares.

Stores are getting bigger, too. A decade ago, a typical store was about 6,000 square feet. Today, the average is about 10,000 square feet.

“The great news is that we have a pipeline of stores that are identified, and we see that this as something that we can really capitalize on over the next few years,” Ms. Wong said.

There is even the hint of international expansion to keep investors glued to further growth prospects.

Aritzia relaunched a new and improved international e-commerce platform in late August to handle sales outside farther afield.

Prior to the relaunch, these sales generated just 1 per cent of the company’s e-commerce revenue.

But that was without any dedicated marketing effort, which will begin next month. Ms. Wong expects to triple international sales within about two years, which could put new markets within the company’s sights.

“It’s still obviously early days, but it’s very encouraging because we continue to gather more data about how we could perform beyond the borders of Canada and the U.S.,” Ms. Wong said on the conference call.

Aritzia is an expensive stock. But the brand is popular with women and the company is making big gains in a difficult economy – so it may just stay that way.

Gold prices breached $4,200 per ounce for the first time on Wednesday, extending a record rally as rising interest rate cut bets and geopolitical jitters send investors flocking to the safe-haven metal.

Spot gold rose 1.4% to $4,198.23 per ounce after hitting an all-time high of $4,217.95 earlier. U.S. gold futures for December delivery gained 1.4% to $4,220.8.

“The metal has been on a tear, and it doesn’t look like it wants to stop… With U.S.-China trade tensions being reignited in the last few days, investors have even more reason to hedge their long equity bets by diversifying into gold,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.

Gold has surged nearly 58% this year, driven by a confluence of factors including geopolitical tensions, rate-cut bets, central bank buying, de-dollarization and strong ETF inflows.

“With the $5,000 handle now just $800 away, I wouldn’t bet against gold getting there eventually,” Razaqzada said, adding that a short-term correction is likely to shake out weaker hands and attract fresh dip buyers.

The dollar slipped against a basket of peers after Federal Reserve Chair Jerome Powell struck a dovish tone on Tuesday, saying the U.S. labor market remained mired in “low-hiring, low-firing doldrums.”

Gold is considered a traditional hedge against uncertainty and inflation, and also thrives in low-rate environments as it is a non-yielding asset.

Traders are pricing in a 25-basis-point rate cut in October with a 98% probability, followed by another cut in December, which is fully priced in at 100%.

Adding to the safe-haven bid, U.S. President Donald Trump said Washington was considering cutting some trade ties with China after both sides imposed tit-for-tat port fees this week.

Markets are also watching the U.S. government shutdown, which has halted official data and may cloud policymakers’ outlook abroad.

Silver climbed 2.6% to $52.77, following Tuesday’s record high of $53.6.

Silver’s surge is driven by a tight London supply, marked by extreme backwardation and record lease rates, but it could reverse quickly if shortages ease, Michael Brown, senior strategist at Pepperstone, said.

Elsewhere, platinum climbed 1.4% to $1,661.04 and palladium rose 0.7% to $1,545.91.

• Bank of America on Wednesday posted third-quarter results that exceeded analysts’ expectations on stronger-than-expected investment banking revenue.
• The second-largest U.S. bank by assets said profit rose 23% from a year earlier to $8.5 billion, or $1.06 per share.
• Revenue increased 10.8% to $28.24 billion.

https://www.cnbc.com/2025/10/15/bank-of-america-bac-earnings-q3-2025.html

Canadian stocks surged on Tuesday, rebounding from Friday’s losses, as gold scales a new peak and in the process lifted many of the mining stocks in Canada’s materials sector, while markets assimilated the renewed China-U.S. trade tensions.

Of note, the Canadian markets were closed yesterday on account of Thanksgiving Day.

After opening just above the previous week’s close, the benchmark S&P/TSX Composite Index gained momentum from the start of the session and traded firmly positive to finally settle at 30,353.61, up by 502.72 points (or 1.68%).

Nine of the 11 sectors posted gains today with Materials sector leading the pack.

Gold and silver, both of which have been up for three consecutive sessions, posted record highs today.

Comex Gold for October delivery climbed to $4,138.70 per troy ounce and Comex Silver for October delivery rose to $50.314 per troy ounce.

The increase in precious metals’ prices lifted Canadian mining stocks, which in turn pushed the market higher.

Meanwhile, the trade relations between China and the U.S. took a turn last week.

After learning about the measures by China to curb rare earth minerals exports, U.S. President Donald Trump threatened to impose another 100% tariff on Chinese goods on top of the existing levies. The new duties are set to take effect from November 1.

Trump also expressed disinterest in meeting Chinese President Xi Jinping in an upcoming summit in South Korea.

Both sides have now tightened their grip on each other’s shipping vessels by imposing special port charges.

Trade tensions between the U.S. and China, the world’s leading major economies and largest consumers, initially overflowed to other markets.

Yesterday, U.S. Treasury Secretary Scott Bessent stated that Trump remains on track to meet the Chinese premier at the Asia-Pacific Economic Cooperation forum, hosted by South Korea in late October. This news halted the sell-off.

Last week, Canadian Prime Minister Mark Carney met U.S. President Donald Trump in Washington, D.C. Despite high expectations, no announcement on tariff reductions or abolition came after the meeting.

The re-negotiation of the Free-Trade Agreement between Canada, the United States, and Mexico is also lying in waiting.

Markets are placing their bets on the ongoing high-level negotiations as both sides stand to benefit from a smoother bilateral trade.

In the U.S., the government shutdown has entered day number fourteen.

Yesterday, Scott Bessent acknowledged that the shutdown is starting to affect the real U.S. economy and people’s lives.

Markets anticipate a 25-basis-point rate cut by the U.S. Federal Reserve later this month.

In Canada, the Bank of Canada cut its benchmark interest rate by 25 basis points to 2.5% in September as largely expected by markets.

On Friday, data released by Statistics Canada revealed that Canada’s unemployment rate held steady at 7.1% in September, below market expectations of 7.2%. It also showed that Canada’s employment rose by 60,400, a 0.3% increase in September following a 65,500 decline in the prior month, and well above market estimates of a 5,000 increase.

These figures dampened the expectations of a rate cut by the Canadian central bank.

In the budget to be tabled on November 4, Carney is planning to implement a slew of measures that will lower costs and protect essential programs that empower Canadians.

Major sectors that gained in today’s trading were Materials (3.19%), Healthcare (2.07%), Consumer Discretionary (2.06%), IT (1.96%) and Financials (1.84%).

Among the individual stocks, Orla Mining Ltd (19.58%), Endeavour Silver Corp (13.99%), Ero Copper Corp (10.60%), Iamgold Corp (7.66%), Bitfarms Ltd (40.96%), and Curaleaf Holdings Inc (5.67%) were the prominent gainers.

Energy (0.28%) and Communication Services (0.57%) were the only two sectors that lost in today’s trading.

Among the individual stocks, Kelt Exploration Ltd (2.01%), Arc Resources Ltd (1.50%), Canadian Natural Resources Ltd (1.21%), BCE Inc (2.12%), and Telus Corp (0.42%) were the notable losers.

Stellantis NV STLA-N +1.72%increase says it is moving production of the Jeep Compass to Illinois from Brampton, Ont., part of a US$13-billion plan to boost production in the United States.

The Brampton plant has been idle since 2023, and work on retooling for new vehicles halted in February, after U.S. President Donald Trump announced plans to lay 25-per-cent tariffs on imported automobiles.

The factory northwest of Toronto had been slated to produce the Jeep Compass when it reopened, but more than 3,000 unionized Stellantis employees remain on layoff while the plant’s future remains unclear.

Stellantis on Tuesday said it plans to boost U.S. production in the U.S. by 50 per cent over the next four years, producing five additional models and adding more than 5,000 jobs in Illinois, Ohio, Michigan and Indiana.

“As part of this announcement, we will move one model from Canada to the U.S.,” Stellantis said in response to questions from The Globe and Mail. “We have plans for Brampton and will share them upon further discussions with the Canadian government.”

Prime Minister Mark Carney said in a statement Stellantis’s decision is a “direct consequence” of U.S. tariffs and possible future trade actions. “Until a more certain trade environment for the North American Auto sector is established through the upcoming review of the Canada-United States-Mexico Agreement, decisions on new investments in the auto sector will continue to be affected.”

The head of Unifor, which represents Stellantis workers, called on the federal government to fight for the jobs.

“Canadian auto jobs are being sacrificed on the Trump altar,” Lana Payne said. “Stellantis cannot be allowed to renege on its commitments to Canadian workers, and governments cannot stand by while our jobs are shifted to the United States. Saving Brampton Assembly must now be this country’s top priority, sending a strong message to any corporation thinking they can take the same egregious actions.”

Brampton Mayor Patrick Brown said he was “deeply disappointed” with Stellantis’s move, which he called a “step backward” from the commitment the company made to workers and their families.

Ontario Premier Doug Ford said Stellantis has received no provincial funding for its Brampton plant and none will be provided until the company provides details on when the factory will restart.

“Stellantis has a duty to live up to their promise to Brampton autoworkers and continue with their allocation in Brampton,” Mr. Ford said.

In 2023, Stellantis’s chief operating officer at the time said the company was committed to the plant and assured the press and employees it would reopen with new models after the retooling. “I’ve given a reassurance in writing to the province, to the feds as well, that we absolutely are committed on the agreements we have with … Brampton,” Mark Stewart said.

In a statement on Tuesday, Stellantis provided no details on its plans for the plant. “We have been in Canada for over 100 years, and we are investing. We are adding a third shift to the Windsor Assembly Plant to support increased demand of all versions of the Chrysler Pacifica and the new Sixpack-powered Dodge Charger Scat Pack and R/T models. Canada is very important to us.”

Stellantis said its new U.S. investments include:

-US$600-million to reopen the plant in Belvidere, Ill., with production of the Jeep Compass and Cherokee by 2027, adding 3,300 jobs.

-US$400-million to move production of a truck previously planned for Belvidere to Toledo, Oh., by 2028.

-$100-milion to retool the Jeep plant in Warren, Mich., to add an electric vehicle and gas-powered SUV.

Mr. Trump says the import taxes on cars and other goods are intended to foster domestic manufacturing.

“We want to make our own cars,” Mr. Trump said in May. “We don’t really want cars from Canada. And we put tariffs on cars from Canada and at a certain point, it won’t make economic sense for Canada to build those cars.”

His trade policies upend decades of free trade in the auto sector that relies on an invisible border for efficient, just-in-time production. A car part typically crosses the border six or seven times before final assembly.

Auto parts are not subject to tariffs if they are compliant with the North American free trade agreement. But aluminum and steel face tariffs of 50 per cent, driving up costs for suppliers.

Ontario is also home to plants owned by Ford, General Motors, Honda and Toyota. Ford’s Oakville plants is idle but work is progressing on a retooling to make heavy-duty pickup trucks, the company has said.

Since Mr. Trump’s import taxes were put in place, there have been thousands of layoffs in Ontario’s auto sector, which mainly produces cars for the U.S market. Some companies have delayed new products and cancelled shifts.

Toyota has called the tariffs on its Ontario exports to the U.S. “unsustainable in the long term.”

World oil supply will rise more rapidly than previously expected this year and a surplus could expand in 2026 as OPEC+ members and other producers lift output and demand remains sluggish, the International Energy Agency predicted on Tuesday.

Supply will rise by 3.0 million barrels per day in 2025, up from 2.7 million bpd previously forecast, the IEA, which advises industrialized countries, said in a monthly report. Next year it will rise by a further 2.4 million bpd, it said.

OPEC+ is adding more crude to the market after the Organization of the Petroleum Exporting Countries, Russia and other allies decided to unwind some output cuts more rapidly than earlier scheduled. The extra supply has raised concern of a surplus and weighed on oil prices this year.

Trump’s threat to impose higher tariffs on China pushes oil to five-month low

South Bow explores increasing crude exports after Carney raises Keystone XL revival with Trump

In the IEA’s view, supply is rising far faster than demand. The agency on Tuesday trimmed its forecast for world demand growth this year to 710,000 bpd, down 30,000 bpd from the previous forecast, citing a more challenging economic backdrop.

“Oil use will remain subdued over the remainder of 2025 and in 2026, resulting in annual gains forecast at around 700,000 barrels per day in both years,” the IEA said in a monthly report.

“This is well below historical trend, as a harsher macro climate and transport electrification make for a sharp deceleration in oil consumption growth.”

IEA demand forecasts are at the lower end of the industry range, as the agency expects a faster transition to renewable energy sources than some other forecasters such as OPEC.

On Monday OPEC maintained its forecast that demand will rise by 1.3 million bpd this year, almost double the rate expected by the IEA, and said the world economy was doing well.

Oil prices declined on Tuesday, with Brent crude trading just below $62 a barrel. That was still up from a 2025 low of near $58 in April.

The IEA has been saying the world market looks oversupplied. Tuesday’s report said global oil supply in September was up by 5.6 million bpd from a year ago, with OPEC+ accounting for 3.1 million bpd of the increase.

Next year, the report implied that global supply may exceed demand by about 4 million bpd, due to growth from OPEC+ and producers outside the group such as the U.S., Canada, Brazil and Guyana, and a limited expansion in demand. That compares to about 3.3 million bpd last month.

The IEA’s view on the potential surplus is larger than that of others. A Reuters poll of analysts in September suggested the market could face an oversupply of 1.6 million bpd in 2026.

OPEC, in contrast, expects world oil supply to closely match demand next year, because it sees a much slower rate of expansion from outside OPEC+ as well as stronger demand.

Monday October 13

China trade surplus

Japan markets closed

Canadian markets closed for Thanksgiving. U.S. stock markets are open, but bond markets closed, for Columbus Day

Earnings include: Fastenal Co.

—

Tuesday October 14

Germany releases inflation and business conditions data. UK releases employment data.

(6 a.m. ET) U.S. NFIB small business economic trends survey

(8:30 a.m. ET) Canada building permits for August.

(11:15 a.m. ET) Bank of Canada senior deputy governor Carolyn Rogers speaks in Vancouver

Newfoundland and Labrador election

Several Fed members to speak throughout the day

Earnings include: BlackRock Inc.; Citigroup Inc.; Goldman Sachs Group Inc.; Johnson & Johnson; JPMorgan Chase & Co.; Wells Fargo & Co.

—

Wednesday October 15

China inflation data for September. Japan industrial production data for August.

Euro area industrial production data; France inflation data

(8:30 a.m. ET) Canadian manufacturing sales for August and new orders. They are expected to be down 1.5 per cent and 2 per cent, respectively.

(8:30 a.m. ET) Canada wholesale trade for August

(8:30 a.m. ET) Canada new motor vehicle sales for August. A decline of 2.5 per cent from a year ago is expected by BMO

(8:30 a.m. ET) U.S. Empire State Manufacturing Survey

Several Fed members expected to speak throughout the day

G20 finance ministers and central bank governors meet in Washington

Earnings include: Abbott Laboratories; Bank of America; Kinder Morgan Inc.; Morgan Stanley; PNC Financial Services Group Inc.; Prologis Inc.

—

Thursday October 16

Euro area trade surplus; Italy inflation data; UK GDP and industrial production data

Canada releases September existing home sales and prices data, as well as September housing starts. The MLS home price is expected by BMO to be down 3.5 per cent from a year earlier

(8:30 a.m. ET) U.S. initial jobless claims, retail sales, PPI and business inventories (tentative)

(10 a.m. ET) U.S. NAHB housing market index.

(1:30 p.m. ET) Bank of Canada governor Tiff Macklem participates in a fireside chat in Washington, DC

G20 finance ministers and central bank governors meet in Washington

Earnings include: American Airlines Group Inc.; Bank of NY Mellon; Charles Schwab Corp.; CSX Corp.; Freeport-McMoran Copper & Gold Inc.; Taiwan Semiconductor Manufacturing Co. Ltd.; U.S. Bancorp.

—

Friday October 17

Euro area inflation data for September

(8:30 a.m. ET) Canada international securities inflows and outflows for August

(8:30 a.m. ET) U.S. housing starts, building permits, and import prices. (tentative)

(9:15 a.m. ET) U.S. industrial production for September.

Earnings include: American Express Co.; Corus Entertainment Inc.; Schlumberger NV; Truist Financial Corp.; Volvo ADR

On Friday morning, the S&P 500 was less than a couple of points from another all-time high. Then, after a single social media post from President Donald Trump, $2 trillion in market value was wiped out.

The unraveling shows the sway the president’s one-man trade policy still has over the fate of the global economy.

Trump at 10:57 a.m. ET wrote on his Truth Social platform that China was “becoming very hostile” with the rest of the world, especially when it comes to its control of rare earth metals. He accused China of holding the world “captive” because of its “monopoly” on these crucial resources.

The key part that the stock market reacted to in the 500-word Trump post was this: “One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”

That’s all it took.

Bespoke Investment Group calculates that about $2 trillion in value from the U.S. stock market was erased by that single post. The S&P 500 lost 2.7% as the closing bell rang out at the New York Stock Exchange. It was its worst performance since early April, when the stock market was in the throes of a cascading sell-off from Trump’s so-called liberation day rollout of higher-than-expected duties for every country on the globe.

The Nasdaq Composite, home to the technology companies that rely on trade with China, sank 3.56%, also its worst performance since April. The Nasdaq touched an all-time high before the Trump post in Friday’s session.

The Dow Jones Industrial Average dropped 879 points, or 1.9% for its worst performance since May. The Russell 2000 small-cap benchmark shed 3%.

Why such a violent drop?

While the Trump administration’s trade talks with China have been progressing at a much slower pace than those with other countries, the stock market consensus was that something would eventually be worked out between the two nations and that overall relations were improving. Trump and the Chinese leader Xi Jinping were set to meet at the Asia-Pacific Economic Cooperation (APEC) summit at the end of this month.

The market had also become comfortable with the around 40% tariff rate already applied to China, reasoning that the U.S. economy was stronger than previously thought to withstand it, and exemptions for products made in China — like Apple’s iPhones — were broad enough to soften any economic impact.

If Trump follows through with his latest threat, investors fear that the load may be too great to bear for the U.S. economy, which is still reliant on imported parts to build automobiles, solar panels, and the like.

Perhaps the greater risk that weighs on the market is retaliation from China on U.S. goods that could lead to an all-out trade war.

What sparked Trump’s threat?

China, overnight into Thursday, tightened its grip further on the rare earths market, of which it controls about 70% of the global supply. Beijing said outside entities must obtain licenses to export pretty much anything using its rare earths and that companies using the metals for military applications would be denied. The companies’ usage would be reviewed on a case-by-case basis by China.

Rare earths are crucial for making semiconductors, electric vehicles and materials for advanced missiles. Trump has been trying to bolster the U.S. supplies of the metal by supporting, and even investing in, U.S. and Canada-based companies that mine for the metal.

What led Friday’s sell-off?

Chipmakers such as Nvidia and AMD led the stock market drop Friday. Nvidia, which is still trying to gain support from the two countries to sell a less-advanced AI chip to China, lost 5%. AMD, which had been leading the latest leg of the rally, sank nearly 8%. Apple lost 3%, while Tesla shed 5%.

But it wasn’t just shares of companies directly related to China trade that declined. It was a broad market sell-off, with 424 of the S&P 500 members closing in the red. Pro investors were forced to reduce risk in everything due to a sudden drop of this magnitude. With their tech positions getting hit, other holdings needed to be sold to raise cash. Plus, there’s the threat the potential new tariffs pose to the U.S. economy. Domestic financials Bank of America and Wells Fargo lost more than 2% each, for example.

A few stocks did manage to stay green on the day. Walmart and the tobacco/nicotine stocks were slightly higher because of their defensive properties.

How long will this sell-off last?

Monday could be another rough day for the markets because Trump followed up his morning post after the closing bell by saying he would impose 100% tariffs on China “over and above any tariff that they are currently paying.”

Trump added that the U.S. would put export controls on “any and all critical software,” which could significantly impact AI leaders like Nvidia. The new duties would begin at the start of next month, around the time of the summit when Trump was set to meet with Xi. Trump’s Friday morning post suggested those talks may not happen now.

The SPDR S&P 500 ETF Trust, a fund that tracks the S&P 500, added a bit to Friday’s session losses after the bell.

Still, some traders and investors believe it may be wise to wait and see if Trump follows through fully on this threat. Most of the stiff tariffs threatened in early April — which sent global markets reeling — were subsequently pared back significantly through negotiations and exemptions, laying the groundwork for a monster comeback rally to new highs for the market. It paid then to call Trump on his bluff and buy the dip — and many investors think it will again.

“The good news is that this may just be another negotiating tactic used by the administration that could yield good results over the long term,” said Jay Woods, chief market strategist at Freedom Capital Markets, during the height of the selling pressure at the NYSE. “The knee-jerk sell-off should be another buying opportunity.”

It’s worth having some perspective on Friday’s sell-off as well. The drop only took the S&P 500 back to its lowest level in a month. The benchmark is still up more than 11% for the year, with a seemingly unstoppable AI trade overshadowing any threat from tariffs, global conflicts and an ongoing government shutdown.

The move disrupted an unusually placid period for the stock market, jarring complacent investors into running for cover for the first time in a long while and adding to the pain. Thursday was the 33rd straight day without a 1% S&P 500 move in either direction, the longest calm streak since January 2020. The market hasn’t had a major decline since the April tariff rollout correction.

One risk is that this sell-off breaks other things on Wall Street. There’s a small, but still growing contagion related to the bankruptcy of private auto parts supplier First Brands. It’s roiling banks with exposure like Jefferies Financial Group and raising concerns about the once-booming private credit industry. Jefferies was down 4% on Friday and another 6% in after-hours trading.

That’s an area to watch, along with the possibility that large hedge funds buying on margin were caught too-long on Friday and now have to aggressively deleverage, which could add to selling pressures next week. The crypto markets, especially the smaller coins outside of bitcoin, were hit especially hard on Friday. The TRUMP meme coin is down 20% in the last 24 hours.

Stock market futures open for trading Sunday evening at 6 p.m. ET. The bond market is closed Monday for Columbus Day.

Canadian stocks declined steeply on Friday – extending yesterday’s losses – as markets analyzed the “surprising” jump in employment numbers released today, which dampened the expectations of another rate cut by the central bank.

After opening above yesterday’s close, the benchmark S&P/TSX Composite Index, quickly turned lower and saw further downside throughout the session before finally closing at 29,850.89, down by 419.09 points (or 1.38%).

Data released by Statistics Canada today revealed that Canada’s unemployment rate held steady at 7.1% in September, below market expectations of 7.2%.

Canadian employment rose by 60,400 jobs in September following the loss of 65,500 jobs in the prior month, well above market estimates of an increase of 5,000 jobs.

The sell-off on Bay Street also came as President Donald Trump threatened to massively increase tariffs on China in retaliation for China’s expansive export curbs on its rare earth minerals, which are essential for manufacturing and technology, triggering fresh concerns of a renewed U.S.-China trade war.

Canadian Prime Minister Mark Carney met Trump early this week in Washington. As Canada has been hit with 35% tariffs on its exports to the U.S., expectations were running high for a reduction in the rates or even some cancellation in levies. However, no significant breakthrough was announced after the meeting.

Canada-U.S. Trade Minister Dominic LeBlanc is still in Washington to meet with U.S. officials and monitor tariff talks.

Currently, the Canada-United States-Mexico Agreement allows a majority of Canadian exports to the U.S. to be exempted from tariffs. This tripartite free trade agreement is also up for renewal by mid-2026.

While consultations are ongoing between Canada and the U.S. on tariffs as well as the CUSMA, so far no details have been divulged for markets to cheer on either of the crucial issues.

However, Carney has stated that negotiations are ongoing on sector-specific deals with the U.S., which he stated would likely stay even with a revised USMCA.

In the U.S., the government shutdown entered day 10 today, with the closure stretching over to next week. Investors from all over the world, (including Canada) are cautiously watching the developments in the U.S. as concerns about spillover effects of this shutdown on global economy are rising.

Vital economic releases are delayed though the U.S. Bureau of Labor Statistics has announced that it will publish the September 2025 Consumer Price Index on Friday, October 24.

Markets are still pricing in a 25-basis-point rate cut in the upcoming October 28-29 Fed’s meeting.

In Canada, however, as the jobs numbers showed a surprise jump, investors are scaling back their expectations for a rate cut by Bank of Canada.

Major sectors that lost in today’s trading were Financials (1.27%), Energy (3.26%), Healthcare (3.90%), and IT (4.29%).

Among the individual stocks, Dye & Durham Ltd (8.57%), Shopify Inc (8.04%), Sylogist Ltd (7.74%), Curaleaf Holdings Inc (8.84%), and Baytex Energy Corp (8.91%) were the notable losers.

Major sectors that gained in today’s trading were Consumer Staples (1.08%), Communication Services (1.03%), and Utilities (0.86%).

Among the individual stocks, Loblaw CO (2.24%), George Weston Limited (1.74%), Metro Inc (1.26%), BCE Inc (1.76%), and Northland Power Inc (3.76%) were the prominent gainers.

Aritizia Inc (8.12%) and Perpetua Resources (7.47%) were among the prime market-moving stocks today.