Canada’s S&P/TSX composite rose 183.82 points on Friday while U.S. markets finished mixed as investors assessed the implications of the midterm elections and an earlier AI-led sell-off.
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Canada’s main stock index finished higher on Friday after a week marked by volatile swings for investors weighing recent U.S. midterm results.
On Wednesday, both Canadian and U.S. equity markets jumped following the elections, with Sadiq Adatia, chief investment officer of BMO Global Asset Management, saying investors were initially encouraged because they could “move past it.” However, Adatia later pointed to questions about what the outcome would mean for the economy and markets, including “technology, and oil.”
Markets later faced pressure on Thursday after an AI sell-off, which was described as being led by stocks tied to the build out of AI data centres. Still, Friday saw improvement after that pullback, though Adatia said it was not yet a “convincing bounce back by any means.”
On Friday, the S&P/TSX composite index was up 183.82 points at 35,789.09. In the U.S., the Dow Jones industrial average fell 237.33 points to 51,285.73, while the S&P 500 rose 23.13 points to 7,376.86 and the Nasdaq composite climbed 264.43 points to 24,579.42.
Canadian investors also assessed the federal 2026 budget, which Adatia said was a “good budget” and highlighted the use of revenue upside tied to higher oil prices to keep spending on the economy.
Adatia also said investors were dealing with an employment picture he described as “not looking that strong,” and noted that earnings have generally remained “good” across Canada, the U.S., and internationally.
In commodities and currency markets, the Canadian dollar traded at 70.86 cents US, down from 71.48 cents US on Thursday. The December crude oil contract rose 31 cents US to US$90.83 per barrel, while December gold fell US$38.60 to US$4,074.90 an ounce.
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