Canada’s main stock index rose to a record high on Friday as commodity prices climbed and domestic employment data reassured investors that the economy is holding up ahead of the review of a continental trade pact this year. The S&P 500 also closed at a record high.
The S&P/TSX Composite Index ended up 234.29 points, or 0.7%, at 32,612.93, surpassing Tuesday’s record closing high. For the week, the index added 2.3%, its biggest weekly gain in six weeks.
Canada’s job growth slowed in December, with the economy creating just 8,200 new jobs after three months of hiring surges. The unemployment rate rose to 6.8% from 6.5% in November. Analysts had expected a loss of 5,000 positions and a jobless rate of 6.6%.
“With everything going on, unemployment is up somewhat but the economy is OK,” said Lorne Steinberg, president at Lorne Steinberg Wealth Management Inc.
“We have of course the U.S. trade agreement (review) coming up and the biggest positive for me is that the U.S. auto makers are lobbying the U.S. government aggressively to keep free trade.”
The United States-Mexico-Canada Agreement, which has shielded much of Canada’s exports from U.S. tariffs, is up for joint review in 2026. Major automakers have urged the Trump administration to extend the free-trade deal they call crucial to American auto production.
“Gold and metals are on fire,” Steinberg said. “A little bit is (down to) the ongoing geopolitical uncertainty but a chunk of it is the weakness of the U.S. dollar.”
The U.S. dollar has rallied in recent days against a basket of major currencies but was down 9.4% in 2025, its biggest decline in eight years.
The TSX materials group, which includes metal mining shares, rose 1.8% as the price of gold moved closer to a record high.
Oil also increased, settling 2.35% higher at US$59.12 a barrel, on growing supply worries linked to intensifying protests in oil-producing Iran. Energy added 1.9%, clawing back some of this week’s decline. Investors have worried that a boost in Venezuelan oil exports to the United States could hurt Canadian companies that sell a similar heavy oil.
Apparel retailer Aritzia also posted strong gains. Its shares rose 5% to notch a record high after quarterly results beat estimates.
Stocks on Wall Street, meanwhile, were lifted by Broadcom and other chipmakers, while a weaker-than-expected jobs report did little to alter expectations of interest rate cuts from the Federal Reserve this year.
Wall Street’s three main indexes all gained sharply in 2026’s first full week of trading, fueled by increases in materials, industrials and other sectors that have lagged technology stocks in recent years.
A Labor Department report showed U.S. employment growth slowed more than expected in December, but a decline in the unemployment rate to 4.4% suggested the labour market was not rapidly deteriorating.
Chip stocks rallied, with the PHLX semiconductor index jumping 2.7% to a record high. Lam Research rallied 8.7% to $218.36 after Mizuho raised its price target on the chip manufacturing tool maker to $220 from $200. Broadcom rose 3.8%, Alphabet added 1% and Tesla climbed 2.1%, all lifting the S&P 500 and Nasdaq.
Vistra jumped 10.5% after Meta Platforms agreed to buy power from the company’s nuclear plants.
“On the overall AI theme, investors are getting granular and picking the winners and losers in terms of sub-themes and individual names,” said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina.
“We view that as a more positive development. It means that we’re getting closer to the monetization phase, where people can actually see and touch the revenue enhancements that are going to come from this revolutionary technology.”
Intel rallied almost 11% after Trump said he had a “great meeting” with the chipmaker’s chief executive officer, Lip-Bu Tan.
The S&P 500 climbed 0.65% to end the session at 6,966.28 points.
The Nasdaq gained 0.82% to 23,671.35 points, while the Dow Jones Industrial Average rose 0.48% to 49,504.07 points.
Nine of the 11 S&P 500 sector indexes rose, led by materials, up 1.8%, followed by a 1.24% gain in utilities.
For the week, the S&P 500 climbed 1.6%, the Nasdaq rose 1.9% and the Dow added 2.3%.
Valuations on Wall Street were relatively high ahead of fourth-quarter earnings season. The S&P 500 is trading at about 22 times expected earnings, down from 23 in November, but above its five-year average of 19, according to LSEG data.
Underscoring a recent shift toward stocks that have underperformed in recent years, the S&P 500 value index has climbed about 2% so far in 2026, beating a 1% gain in the S&P 500 growth index.
The U.S. Supreme Court said it would not issue a ruling on Friday on the legality of U.S. President Donald Trump’s sweeping tariffs. This left investors, many of whom expected a decision, awaiting clarity. Traders anticipate heightened volatility across financial markets if the court strikes down the tariffs.
Mortgage lenders rose a day after Trump said he is ordering his representatives to buy $200 billion in mortgage bonds to bring down housing costs.
LoanDepot surged 19.3%, Rocket Companies gained 9.6% and Opendoor Technologies rallied 13.1%.
The Philadelphia Housing index gained 5.7% to its highest since October.
General Motors shares fell more than 2% after the automaker said on Thursday it would take a $6 billion charge to unwind some electric-vehicle investments.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.3-to-one ratio. The S&P 500 posted 48 new highs and 6 new lows; the Nasdaq recorded 140 new highs and 62 new lows.
Volume on U.S. exchanges was relatively heavy, with 17.0 billion shares traded, compared to an average of 16.4 billion shares over the previous 20 sessions.
Reuters, Globe staff