Stocks Hover for Direction as CPI Surges: Market Analysis: April 10th, 2026
Global Markets
Canadian Markets
Canada’s TSX closed 0.65% higher, showing notable resilience on gains in the energy sector even though oil dropped 2%, an indication that investors are increasingly positioning for longer-term supply tightness rather than reacting to short-term price volatility. Financials also provided asupport, reinforcing the index’s defensive tilt as banks continue to benefit from relatively firm net interest margins and capital market activity.
Canada’s labour market showed only a modest rebound in March, adding 14,000 jobs after a sharp loss of 84,000 in February, indicating that the recovery is still fragile.. The unemployment rate held steady at 6.7%, with little change in full- or part-time employment, suggesting stabilization but not momentum.
American Markets
US stocks were mixed, with the tech-heavy Nasdaq Composite the only major index in positive territory, driven by continued strength in AI-linked names pushing toward fresh all-time highs. This divergence underscores a market increasingly split between high-growth, AI-driven momentum trades and broader macro-sensitive sectors that are struggling to gain traction amid rising inflation uncertainty.
That uncertainty intensified following the latest inflation data from the Bureau of Labor Statistics, which showed a sharp acceleration in March CPI. Headline inflation rose 3.3% year-over-year, up from 2.4% in February, largely driven by a surge in energy costs tied to escalating geopolitical tensions surrounding the U.S.-Israel war on Iran. On a monthly basis, CPI jumped 0.9%, matching expectations but still representing a significant reacceleration. Core CPI remained more contained at 2.6% annually, suggesting that while underlying inflation pressures are relatively stable, headline inflation is being driven by exogenous shocks, primarily energy.
Markets interpreted the data as reinforcing a “higher-for-longer” rate environment. The U.S. dollar remained relatively unchanged but was still on track for its largest weekly decline since January, reflecting some repositioning in rate expectations. Meanwhile, gold pulled back modestly on the day but remained poised for a third consecutive weekly gain, signaling persistent demand for inflation hedges and geopolitical risk protection.
European Markets
European markets traded mostly flat with a negative bias, amid a fragile ceasefire backdrop and mounting energy supply concerns. Airlines warned of rising costs and began adjusting both guidance and pricing strategies, while industry groups flagged a potential jet fuel shortage if disruptions in the Strait of Hormuz persist. These developments are feeding directly into expectations that the European Commission may revise growth forecasts lower due to sustained energy cost pressures.
UK markets closed flat as sterling weakened, with renewed political debate emerging around domestic energy policy following calls from ex-PM Tony Blair to expand North Sea oil production. At the same time, investor sentiment has clearly deteriorated, with significant capital outflows of £1.4b from UK equities highlighting a broader risk-off shift tied to geopolitical escalation and energy insecurity.
Corporate Stock News
Abbott Laboratories (ABT) – A Chicago jury ordered the company to pay $53 million in damages related to lawsuits alleging its infant formula caused a serious bowel disease.
AbbVie Inc. (ABBV) – Guggenheim raised its target price to $249 from $242, citing confidence in sustained high single-digit sales growth.
Alaska Air Group Inc. (ALK) / American Airlines Group Inc. (AAL) – Both airlines are increasing baggage fees to offset sharply higher jet fuel costs driven by Middle East supply disruptions.
Amgen Inc. (AMGN) – Its lung cancer drug tarlatamab received approval in China, expanding its oncology pipeline and global market reach.
Apple Inc. (AAPL) – The company will close its unionized Towson retail store while maintaining strong global smartphone shipment growth despite supply constraints.
CarMax Inc. (KMX) – The company is adding two new board members following pressure from activist investor Starboard Value, which has now withdrawn its nominations.
Chevron Corp. (CVX) – JPMorgan raised its target price to $216 from $181, driven by expectations of stronger earnings from higher oil prices.
ConocoPhillips (COP) – The company is evaluating a return to Venezuela to explore oil and gas opportunities while seeking to recover prior expropriated assets.
Constellation Brands Inc. (STZ) – JPMorgan raised its target price to $168 from $163, citing expected sales upside from the upcoming World Cup.
EOG Resources Inc. (EOG) – The company raised its tax expense outlook due to stronger oil prices linked to geopolitical tensions.
EQT Corp. (EQT) – The company, alongside Glencore, secured additional long-term LNG supply agreements, advancing a major export project toward final investment decision.
Parker-Hannifin Corp. (PH) – Stifel raised its target price to $1,000 from $965, supported by improved long-term growth expectations.
Shopify Inc. (SHOP:CA) – JPMorgan raised its target price to CAD $207 from $202, citing resilience against emerging disruptions in agentic commerce.
USA Rare Earth Inc. (USAR) – The company is expanding into Europe with a stake in a French processing firm and is considering building a magnet plant to strengthen supply chains.
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