CANADIAN MONEY BRIEF • DAILY MARKETS UPDATE
Friday, November 6, 2026 • Covers Thursday’s closes plus Friday’s Asia session and early Europe
A post-election rally turned into an AI-driven rout. The S&P/TSX Composite fell 736.13 points, or 2.03%, to 35,605.27 on Thursday, erasing most of Wednesday’s 2.28% surge. South of the border, the Nasdaq plunged 5.52% into a correction, and the damage spread to Asia overnight, where Japan’s Nikkei fell into a bear market. Investors cited weak chip earnings and fears of tighter rules on AI data centres after the Democrats’ midterm wins.
THE BOTTOM LINE
- The TSX fell 2.03% to 35,605.27, giving back most of Wednesday’s post-election surge. It is still sitting about 4% below its August record.
- On Wall Street the S&P 500 sank 4.36% and the Nasdaq dropped 5.52% into a correction as AI and chip stocks were dumped.
- Asia took the hit overnight: the Nikkei fell 5.96% into a bear market, and South Korea’s Kospi dropped 6.02% after a trading halt.
- Jobs day: Statistics Canada and the U.S. Labor Department both report at 8:30 a.m. ET.
Thursday’s Scoreboard: Canada and the U.S.
| Index (Thursday, Nov. 5) | Close | Change | % Change |
|---|
| S&P/TSX Composite | 35,605.27 | -736.13 | -2.03% |
| S&P/TSX 60 | 2,118.22 | -44.96 | -2.08% |
| Dow Jones Industrial Average | 51,523.06 | -1,833.06 | -3.44% |
| S&P 500 | 7,353.73 | -334.89 | -4.36% |
| Nasdaq Composite | 24,315.00 | -1,421.52 | -5.52% |
| Russell 2000 | 2,729.89 | — | -4.45% |
Sources: The Canadian Press, Yahoo Finance and Investing.com closing figures, Thursday, Nov. 5, 2026.
Canada: TSX Gives Back Its Big Gain
The TSX opened higher, touched about 36,549 early, then slid to a session low near 35,514 around 1 p.m. before steadying. Technology names, led by Celestica, and base-metal stocks did the most damage. Firmer gold and oil prices cushioned the fall, and the Toronto index still held up better than Wall Street, where the declines were roughly double. At 35,605, the TSX sits about 4% below its August record of 37,069.11, and it is essentially flat for the week.
Budget 2026 also landed Thursday. Finance Minister François-Philippe Champagne projected a $62.3-billion deficit this fiscal year and unveiled $142.1 billion in new measures over five years, including a grocery rebate top-up. Analysts suggested the bond-market impact would be muted because the fiscal path looks much like the spring update, so inflation and the trade dispute with the U.S. matter more for yields and the loonie right now.
United States: Worst Chip Selloff Since 2020
It was a brutal session on Wall Street. The Dow dropped 1,833 points, the S&P 500 lost a record roughly US$2.9 trillion in market value in a single day, and the Nasdaq now sits about 11.9% below its all-time high set last month, officially a correction. AMD tumbled about 17%, CoreWeave fell nearly 10% and GE Vernova sank 7.5%. The VIX volatility index surged to 28.18. All 11 S&P 500 sectors finished lower, though defensive sectors held up best.
Treasury yields fell as investors sought safety, with the 10-year near 4.84%. Early Friday, futures were mixed: tech-heavy Nasdaq contracts bounced while Dow futures pointed lower. That suggests dip-buyers are testing the waters, but it is far from an all-clear.
| U.S. futures (about 7 a.m. ET) | Level | % Change |
|---|
| S&P 500 futures | 7,395.75 | +0.17% |
| Nasdaq futures | 27,143.50 | +1.46% |
| Dow futures | 51,040.00 | -1.11% |
Futures quotes are as of about 7 a.m. ET and will move before the open.
Asia-Pacific: Bear Markets in Tokyo and Seoul
| Asia-Pacific (Friday, Nov. 6 close) | Close | % Change |
|---|
| Japan: Nikkei 225 | 57,435 | -5.96% |
| South Korea: Kospi | 5,059.69 | -6.02% |
| Taiwan: Taiex | 39,701.64 | -4.51% |
| Hong Kong: Hang Seng | 24,481.86 | -1.27% |
| China: Shanghai Composite | 3,646.63 | -1.17% |
| Australia: S&P/ASX 200 | 9,020.80 | -0.5% |
Sources: AP, Bloomberg, Anadolu, The Standard (Hong Kong), Focus Taiwan. Shanghai quoted at 3,646.63 by one source; others show 3,649 (rounding differences). Figures are closing levels, Friday, Nov. 6.
Asia bore the brunt of the AI selloff. The Nikkei lost 3,643 points to close at 57,435, its fifth straight decline, falling below 60,000 for the first time since May and sliding more than 20% below its June peak. South Korea’s Kospi plunged as much as 8.8%, triggering a 20-minute trading halt, before closing down 6.02%. SK Hynix finished down 10.4% and Samsung Electronics fell 6.4%. In Taiwan, TSMC hit its 10% daily limit down early on before closing 4.7% lower. Hong Kong and mainland China fell far less, and Australia’s ASX 200 slipped just 0.5%, a sign that the pain was concentrated in chip-heavy markets.
Europe: Early Losses After a Quieter Thursday
| Europe | Thursday close | Thursday % | Friday early trade |
|---|
| Stoxx Europe 600 | 654.87 | -0.38% | about -1.3% |
| Germany: DAX | 26,325.01 | -0.43% | about -1.5% |
| UK: FTSE 100 | 10,782.66 | -0.43% | about -1.4% |
| Euro Stoxx 50 | 6,231.54 | -0.55% | n/a |
Thursday closes per Reuters and exchange data. Friday figures are approximate early-trade moves from Bloomberg, CNN and Euronews and are changing through the session.
European stocks closed modestly lower Thursday after briefly touching records, as chipmakers led the retreat, with ASML down 6.6%. On Friday the region opened sharply lower, with losses spread across every sector and chip names under pressure again. The Bank of England raised its Bank Rate to 4.00% from 3.75% on Thursday in a unanimous 9-0 vote, its first hike in more than three years. Sterling hit its strongest trade-weighted level since the 2016 Brexit vote.
Oil, Gold, the Loonie and Rates
| Commodities, rates & currencies | Level | Move |
|---|
| WTI crude (Dec.), Thursday | US$90.52 | +US$2.40 |
| Gold (Dec.), Thursday | US$4,113.50 | +US$40.50 |
| Gold, Friday pre-market | about US$4,070 | about -1.1% |
| Canadian dollar, Thursday | 71.48¢ US | vs. 71.63¢ Wed. |
| U.S. 10-year Treasury yield | about 4.84% | yields fell |
| VIX volatility index, Thursday close | 28.18 | fear gauge surged |
| Bitcoin, Friday morning | about US$76,000 | about -4.5% |
Sources: The Canadian Press, Yahoo Finance. Friday readings are pre-market and approximate.
Oil rebounded on renewed Iran-war supply worries after sliding below US$100 earlier this week, while gold gained on Thursday but was drifting lower in early Friday trading. The Canadian dollar edged down to 71.48¢ US from 71.63¢ on Wednesday.
💡 What It Means for You
- Your RRSP and TFSA: Canadian-only funds fell about 2% Thursday, but U.S. and global index funds took a far bigger hit, with the S&P 500 down 4.36% and the Nasdaq down 5.52%. A one-day drop is a number on a screen until you sell, so it is worth checking how much of your portfolio is tilted toward AI and chip names before you do anything.
- Mortgage rates: A rush into safe-haven bonds pushed the U.S. 10-year yield down to about 4.84%. Canadian fixed mortgage rates follow Government of Canada bond yields, so a lasting drop in yields could eventually ease fixed-rate pricing. One day is not a trend, and variable-rate holders are still dealing with the Bank of Canada’s Oct. 28 hike to 2.50%.
- The loonie: At 71.48¢ US, it slipped slightly from Wednesday. If you are converting U.S. dollars for travel or U.S. stock purchases, expect choppy exchange rates while markets are this jumpy.
- Gas and groceries: Oil rebounded to about US$90 on Thursday after sliding below US$100, so relief at the pump is not guaranteed while Middle East supply worries linger.
WHAT TO WATCH TODAY
- 8:30 a.m. ET, Canada’s October jobs report. Economists polled by LSEG expect a gain of about 13,600 jobs with the unemployment rate holding at 6.5%, after September’s loss of roughly 68,000 jobs.
- 8:30 a.m. ET, U.S. October payrolls. The Bloomberg consensus is +65,000 jobs, a 4.2% unemployment rate and 0.3% monthly wage growth. Markets are still pricing a sizeable chance of a Fed hike in December, so a hot report could add to the pressure.
- Earnings: Enbridge (TSX: ENB) reports this morning, along with Moderna, Humana and Vistra.
- Sentiment: The preliminary University of Michigan November reading (47.3 expected) and whether Friday’s Nasdaq-futures bounce survives the opening bell.
This article is general information for Canadian readers, not personalized investment, tax or legal advice. Market figures are drawn from The Canadian Press, Yahoo Finance, Investing.com, Bloomberg, AP and Reuters reporting and reflect Thursday, Nov. 5 closes plus Friday, Nov. 6 Asia closes and early European and U.S. futures trading (about 7 a.m. ET). Figures may be revised.
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