The outside view of the TMX building was captured in Toronto on Wednesday (Photo: Chris Young/The Canadian Press)
Canada's main stock index ended higher on Thursday, powered by a surge in tech shares and upbeat job data from the U.S., while American markets continued to climb, with the S&P 500 notching yet another record.
The positive shift in investor mood came after fresh U.S. employment numbers beat expectations. According to a government report released Thursday, U.S. employers added 147,000 more jobs than they cut in the past month—an encouraging sign that the job market remains solid despite concerns over tariffs and inflation pressures.
Adelaide Chiu, portfolio manager and vice-president at NEI Investments, noted that the surprise jump in hiring gave equity markets a boost. “The non-farm payroll figures exceeded forecasts, and we saw markets respond quickly,” Chiu said. She added that strong employment data from the U.S. often has a ripple effect on the Canadian market.
Another factor helping markets climb was the U.S. House of Representatives approving a sweeping tax and spending bill, which President Donald Trump praised as “beautiful.” The bill passed just in time for the July 4 deadline he had set.
Indexes Surge on Both Sides of the Border
By the close of trading, the S&P/TSX composite index had gained 164.60 points to finish at 27,034.26.
In the U.S., all three major stock indexes moved higher:
- Dow Jones Industrial Average: up 344.11 points to 44,828.53
- Nasdaq Composite: up 207.97 points to 20,601.10
- S&P 500: up 51.93 points to 6,279.35 — marking its fourth record high in five days
Despite the enthusiasm, Chiu advised caution. “Markets have clearly surged, and many investors expect the trend to continue. But we also see warning signs that stocks may be overbought,” she explained. “Any negative news — like geopolitical tensions in the Middle East or trade disruptions — could send parts of the market downward.”
Canada’s Trade Outlook Shows Positive Signs
Canadian investors also digested encouraging trade data. Statistics Canada reported that the country’s trade deficit shrank to $5.9 billion in May, down from a record $7.6 billion in April. The improvement came as gold exports increased, signalling that Canada is successfully expanding trade beyond its usual U.S. market.
Chiu highlighted the broader significance: “It’s encouraging to see Canadian exports growing. That shows progress in diversifying our trade partnerships globally.”
Currency and Commodity Snapshot
- Canadian Dollar: climbed slightly to 73.66 cents US, up from 73.41 cents the previous day
- Crude Oil (August contract): slipped 45 cents to settle at US$67.00 per barrel
- Gold (August contract): dropped US$16.80 to US$3,342.90 per ounce
