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Daily Markets Update: Hot U.S. CPI Rattles Tech, Kospi Crashes 7.6%, TSX Slides 1.1% (Oct. 15)

  Thursday, October 15, 2026 | Canadian Money Brief | Daily Markets Update A hotter-than-expected U.S. inflation report turned Wednesday into a risk-off day, and the damage spread overnight to Asia, where South Korea's Kospi crashed 7.6% and triggered a market-wide circuit breaker. Here is where Canada, the U.S. and the world's other major markets stand this morning. Today's Headlines U.S. CPI hit 3.7% in September (3.6% expected, 3.4% in August), with core inflation at 2.6%. The Nasdaq fell 1.88% and the S&P 500 lost 1.11%. The TSX fell 1.11% to 35,584.46 , ending a three-day winning streak as materials plunged 4.33%. Asia sold off hard on AI valuation fears: Kospi -7.57% (seventh straight loss), Nikkei -4.90%. The loonie sits near an 18-month low at about 70.1 US cents as Fed-hike bets rise. Brent closed at US$106.06 and gold slid to a one-week low near US$4,084. Canada: TSX Ends Three-Day Win Streak The S&P/TSX Composite Index fell 399.52 points, or 1.11%, to...

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Trump Orders Immediate Paid Leave for All US Government Diversity Staff

In a sweeping move, President Donald Trump has ordered all US government staff working on diversity, equity, and inclusion (DEI) initiatives to be placed on immediate paid administrative leave. This directive, confirmed by the White House, mandates that all federal DEI workers be put on leave by 5:00 PM EST on Wednesday, with the offices and programs in question set to be shut down.

The executive order, issued on Tuesday, calls for an end to what Trump described as "dangerous, demeaning, and immoral" DEI programs. The president has acted swiftly on this key campaign pledge, arguing that DEI practices are discriminatory. The American Federation of Government Employees (AFGE), representing 800,000 federal workers, has expressed uncertainty about the number of people affected by this order.

DEI programs aim to promote workplace participation from diverse backgrounds, addressing historical underrepresentation and discrimination against certain groups, including racial minorities. However, critics argue that such programs can be discriminatory themselves. In his inaugural address, Trump pledged to "forge a society that is color-blind and merit-based".

A memo from the US Office of Personnel Management instructed government agencies to place DEI employees on leave and remove public websites for DEI offices. By Thursday, federal agencies must compile a list of DEI offices and workers, and by January 31, they must submit a plan for executing layoffs in DEI offices.

Trump's executive order also targets DEI and DEIA (diversity, equity, inclusion, and accessibility) policies, framing them as potentially violating civil rights laws that protect Americans from discrimination. White House Press Secretary Karoline Leavitt stated that the move is "another win for Americans of all races, religions, and creeds" and fulfills a campaign promise made by Trump.

The order revokes a Civil Rights era executive order from 1965, signed by former President Lyndon B. Johnson, which made it illegal for federal contractors to discriminate based on race, color, religion, sex, sexual orientation, gender identity, or national origin in their hiring. It also requires the attorney general to submit recommendations within 120 days to encourage the private sector to end similar diversity efforts.

Unions representing federal employees have begun to mobilize against Trump's executive orders, with several labor groups condemning the actions. The AFGE argued that diversity programs had reduced gender and racial pay disparities in the federal workforce. AFGE national president Everett Kelley stated that undoing these programs undermines the merit-based civil service and turns federal hiring and firing decisions into loyalty tests.

The order is seen as an attempt to intimidate and attack nonpartisan civil servants, according to the National Federation of Federal Workers.



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