The big picture: It was a wild ride for Canadian investors. The TSX tumbled 1.7% on Wednesday as bond yields surged, then rallied 1.5% on Friday even after Statistics Canada reported a shocking 68,300 job losses. The twist: bad news for the economy was good news for stocks, because it cut the odds of a Bank of Canada rate hike. The loonie wasn’t so lucky — it sank to an 18-month low. Here is your full week in review for Monday, October 5 to Friday, October 9, 2026.
The Weekly Scoreboard
| Market | Fri Oct 9 close | Day | Week |
|---|
| S&P/TSX Composite | 35,664.62 | +1.48% | +0.5% |
| S&P 500 | 7,811.54 | +0.59% | +1.2% |
| Dow Jones | 51,654.95 | +0.83% | +0.9% |
| Nasdaq Composite | 27,366.17 | +0.64% | +0.6% |
| STOXX Europe 600 | 631.55 | +0.97% | 0.0% |
| FTSE 100 | 10,552.04 | +1.06% | +0.9% |
| DAX | 25,087.27 | +1.13% | -0.6% |
| CAC 40 | 7,803.33 | +0.95% | -1.2% |
| Brent crude (US$/bbl) | ≈ 104 | ≈ flat | +2% |
| WTI crude (US$/bbl) | ≈ 91 | ≈ flat | ≈ flat |
| Gold, Dec futures (US$/oz) | 4,216.30 | +1.4% | +1.3% |
| USD/CAD (loonie ≈ 70¢ US) | ≈ 1.4275 | Loonie -0.4% | Loonie -0.2% |
Weekly moves are Friday close vs. prior Friday and are rounded. Oil figures are approximate late-Friday levels. The Canadian dollar “week” figure shows the loonie’s change vs. the US dollar.
Canada: TSX Gains Despite a Jobs Shock
The S&P/TSX Composite closed Friday at 35,664.62, up 519.24 points (+1.48%), to finish the week about 0.5% higher than the prior Friday’s 35,502.65. It was a bumpy path getting there:
| S&P/TSX Composite | Close | Change |
|---|
| Fri Oct 2 (prior week) | 35,502.65 | — |
| Tue Oct 6 | 35,649.51 | — |
| Wed Oct 7 | 35,041.86 | -1.70% |
| Thu Oct 8 | 35,145.38 | +0.30% |
| Fri Oct 9 | 35,664.62 | +1.48% |
- Wednesday’s drop: The index lost 607.65 points as rising bond yields and a slide in gold hit the two heaviest groups on the TSX — miners and banks.
- Thursday’s rebound: A modest 0.3% gain, helped by solid earnings, firm oil and gold, and easing fears of an immediate US–Iran escalation. Richelieu Hardware jumped 11.4% on strong results.
- Friday’s rally: Gains were broad-based as the jobs data lowered expectations for a Bank of Canada hike and Canadian bond yields fell.
- Big picture: The TSX is still about 3.8% below its August record of 37,069.11.
The Jobs Report That Moved Everything
Canada lost a net 68,300 jobs in September, far worse than the roughly 9,000-job gain economists expected. That follows August’s loss of about 41,700 jobs, and it wipes out the employment gains made earlier in 2026. The unemployment rate ticked up to 6.5% from 6.4%. Average hourly wages for permanent employees rose 2.3% from a year earlier.
Markets reacted fast. Traders now see only about a 25% chance of a Bank of Canada rate hike on October 28 (down from roughly 40% before the report), and the next hike is now priced for December. The two-year Government of Canada yield dropped about 7 basis points to roughly 3.18%.
The Loonie Slides to an 18-Month Low
The Canadian dollar fell as low as 1.4298 per US dollar on Friday — its weakest level since April 2025 — before settling near 1.4275 (about 70 US cents). It was the loonie’s fifth straight weekly decline. Two forces are at work: a Bank of Canada sitting well below US rates, and US Treasury yields that hit their highest levels in more than two decades this week.
United States: Records, a Wobble, Then a Rebound
Wall Street had a volatile week, but all three major indexes still finished higher. The S&P 500 and Nasdaq both set record highs on Tuesday on AI optimism. Wednesday brought a pullback as long-term yields spiked, and Thursday saw the Nasdaq drop 1.25% in an AI-trade stumble tied to concerns about OpenAI’s revenue. Friday brought relief:
- S&P 500: 7,811.54 (+0.59% on the day, about +1.2% for the week)
- Dow Jones: 51,654.95 (+423 points, +0.83%)
- Nasdaq: 27,366.17 (+0.64%), with tech rebounding and oil easing
- Bond yields: The 10-year Treasury yield pushed above 5% this week, a level not seen in more than 20 years, before easing late in the week.
- Earnings season starts: JPMorgan and other big banks report Tuesday, kicking off third-quarter results.
Europe: Friday Rally Trims the Week’s Damage
European stocks bounced about 1% on Friday after oil eased following President Trump’s pledge not to attack Iran before the US midterm elections on November 3. Telecom stocks bucked the trend after SpaceX announced a deal to buy a US low-band spectrum portfolio.
| Europe (Friday close) | Close | Day | Week |
|---|
| STOXX Europe 600 | 631.55 | +0.97% | 0.0% |
| FTSE 100 (UK) | 10,552.04 | +1.06% | +0.9% |
| DAX (Germany) | 25,087.27 | +1.13% | -0.6% |
| CAC 40 (France) | 7,803.33 | +0.95% | -1.2% |
The UK was the standout of the week; France and Italy lagged. Earlier in the week, the STOXX 600 hit its lowest close in nearly four months before Friday’s bounce.
Asia: Mixed in Holiday-Thinned Trading
| Asia (Friday close) | Close | Day |
|---|
| Nikkei 225 (Japan) | 69,030.92 | -0.02% |
| Hang Seng (Hong Kong) | 24,211.35 | +1.79% |
| Shanghai Composite | 3,813.79 | +0.05% |
| Kospi (South Korea) | Closed (Hangul Day) | — |
Hong Kong led the region on Friday, while Japan’s Nikkei finished essentially flat near the 69,000 level after recovering early losses. Markets in South Korea and Taiwan were closed for holidays. China is due to release its latest economic growth figures next week.
Oil and Gold
Oil: Crude was volatile as Iran stepped up attacks on tankers in the Strait of Hormuz. Brent jumped about 4% on Thursday to settle at US$104.28 (WTI: US$91.49) before easing on Friday after Trump said talks with Tehran were “productive” and ruled out an attack before the midterms. China’s plan to resume refined fuel exports also weighed on prices. By the close, Brent was back near US$104 — up roughly 2% on the week — while WTI was little changed near US$91.
Gold: Bullion fell to a two-month low near US$4,100 on Wednesday as a stronger dollar and surging yields weighed on it, then bounced. December gold futures settled at US$4,216.30 on Friday (+1.4%), for a weekly gain of about 1.3%. In Canadian dollars, gold traded near C$5,980 an ounce.
What It Means for You
- US dollars cost more. With the loonie near 70 US cents, US travel, US-dollar subscriptions and cross-border shopping are pricier. If you have a US trip or purchase coming, it may be worth planning for the exchange rate.
- Rate-hike worries are easing. Weaker jobs data lowers the odds of a Bank of Canada hike on October 28, which is welcome news for variable-rate mortgage and HELOC holders. Fixed mortgage rates follow bond yields, which dipped Friday but remain elevated.
- Don’t overreact to one week. The TSX swung 1.7% down and 1.5% up in the same week. If you’re investing for the long term in a TFSA or RRSP, a diversified plan matters more than any single week’s headlines.
General information only, not personalized financial advice.
What to Watch Next Week
| Date | Event |
|---|
| Mon, Oct 12 | Thanksgiving Day: TSX closed (US stock markets open) |
| Tue, Oct 13 | JPMorgan and other big US banks kick off Q3 earnings season |
| Wed, Oct 14 | US September inflation (CPI) report, a key input for the Fed |
| This week | China releases its latest GDP growth figures |
| Ongoing | US–Iran talks and Strait of Hormuz shipping attacks, the main driver of oil |
| Wed, Oct 28 | Bank of Canada and US Federal Reserve rate decisions |
Market data as of Friday, October 9, 2026 close; weekly changes are calculated from the prior Friday close and rounded. Sources include TMX, Reuters, The Globe and Mail, The Canadian Press, CNBC, Investing.com, Kitco, Sharecast and Statistics Canada. This content is for general information only and is not investment, tax or legal advice. Past performance does not guarantee future results.
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