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TORONTO \u2014 Canada\u2019s main stock index rose nearly 250 points on Friday, as investors sifted through the latest employment figures. \u00a0\u00a0<\/p>\n
The domestic job market took a leap toward recovery in July. Statistics Canada said on Friday that the unemployment rate edged lower to 6.4 per cent in the month as the economy added 75,000 jobs. A Reuters poll ahead of the release showed Bay Street was expecting a modest 15,000-job gain.\u00a0<\/p>\n
But economists say there\u2019s still a long road ahead before the Bank of Canada considers tightening policy.\u00a0<\/p>\n
\u201cI would be hoping for interest rate cuts, but with strong jobs data and inflation slightly above target on the headline number, although the core is right at target, I think the Bank of Canada just stands \u2026 it doesn\u2019t do anything,\u201d said Allan Small, senior investment adviser at iA Private Wealth.<\/p>\n
\u201cI don\u2019t think we\u2019re going to see a raise; I don\u2019t think we\u2019re going see a cut.\u201d\u00a0<\/p>\n
Financial market odds were about 96 per cent in favour of a hold from the Bank of Canada at its Sept. 2 meeting, according to LSEG Data & Analytics.<\/p>\n
The S&P\/TSX composite index was up 244.92 points at 36,381.23. The basic materials sector led the gains, helped by rising gold prices. The December gold contract was up US$100.10 at US$4,399.70 an ounce.<\/p>\n
The rise in gold came amid weaker employment data from the U.S.<\/p>\n
The U.S. government reported that employers unexpectedly cut 23,000 jobs last month. The report included a revision to the figures for June and May that involved slashing a combined 103,000 jobs from payrolls for those months.\u00a0<\/p>\n
That could reduce the odds of a rate hike from the U.S. Federal Reserve.\u00a0<\/p>\n
\u201cWith today\u2019s data showing weakness, with the odds of a rate increase now off the table or at least lower than 50 per cent, now everybody\u2019s saying \u2018Gold is back on,\u2019\u201d Small said.<\/p>\n
In New York, the Dow Jones industrial average was up 151.83 points at 54,036.93. The S&P 500 index was up 47.68 points at 7,757.64, while the Nasdaq composite was up 342.26 points at 26,690.62.\u00a0<\/p>\n
A weakening U.S. jobs market could make matters more complicated for the Fed, which has to balance supporting job growth with fighting inflation. The Fed has been holding interest rates steady amid worries about hotter inflation, fueled by a rise in oil prices because of the U.S. war with Iran.<\/p>\n
In the oil market, prices rose on Friday.\u00a0<\/p>\n
\u201cIt\u2019s one of those things where everybody\u2019s waiting to see what\u2019s going to happen, we\u2019re hearing different things. Iran keeps saying something different than the U.S.,\u201d Small said.<\/p>\n
The September crude oil contract for North American benchmark West Texas Intermediate was up 89 cents US at US$78.18 per barrel.<\/p>\n
The Canadian dollar traded for 71.72 cents US compared with 71.34 cents US on Thursday. \u00a0\u00a0<\/p>\n
The December gold contract was up US$100.10 at US$4,399.70 an ounce. \u00a0\u00a0\u00a0<\/p>\n
—<\/p>\n
Daniel Johnson, The Canadian Press<\/p>\n
With files from The Associated Press<\/p>\n
This report by The Canadian Press was first published Aug. 7, 2026.<\/p>\n
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