Canada, U.S. stock markets rise as jobs data from both countries came into focus

Traders work on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. Photo by Seth Wenig /APArticle contentTORONTO — Stock markets in Canada and the U.S. set record highs on Friday, as investors sifted through employment data in both countries.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentAdam Ludwick, the director of asset allocation at NEI Investments, said that Friday’s trading session felt like a continuation of the trends that drove markets in 2025.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentHe noted that the basic materials sector on the S&P/TSX composite index benefited from a rise in gold prices. The February gold contract was up US$40.20 at US$4,500.90 an ounce.Article contentArticle content“There’s obviously some geopolitical instability right now, and that has led gold higher to start the year,” Ludwick said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentCanadian investors digested the latest employment data from Statistics Canada, which said a boost in the number of people looking for work in December drove the unemployment rate higher at the end of the year.Article contentThe agency said the economy added 8,200 jobs last month, topping economists’ expectations. The unemployment rate rose to 6.8 per cent in December, StatCan said, up from 6.5 per cent in November.Article content“It feels like it’s in this cautious balance. You have job creation that continues, but you also have some slack,” Ludwick said.Article contentElsewhere on the TSX, Aritzia Inc. shares gained 4.97 per cent after it reported earnings on Thursday after the market closed. As 2025 drew to a close, the Vancouver-based clothing company was on the precipice of a banner shopping season and the end of a record quarter for net revenue.Article content“I think what’s encouraging is looking at it from a Canadian economy standpoint, their sales are up 29 per cent year over year in Canada. That’s particularly strong,” Ludwick said.Article contentArticle contentThe S&P/TSX composite index was up 234.29 points at 32,612.93 for a new record.Article contentU.S. stocks hit records Friday following a mixed report on the U.S. job market, one that may delay another cut to interest rates by the Federal Reserve but does not slam the door on it.Article content“The markets are up because anything in terms of a little bit of weakness is seen as a positive. It’s a bad news is good news type of mentality because another (interest rate) cut would be beneficial to stocks,” Ludwick said.Article contentThe U.S. Labor Department said employers hired fewer workers during December than economists expected, though the unemployment rate improved and was better than expected. It reinforced how the U.S. job market may be in a ” low-hire, low-fire” state and may hopefully avoid a recession.Article contentFriday’s improvement in the unemployment rate was enough to get traders to ratchet back expectations for a cut to interest rates at the Fed’s next meeting, which is scheduled for later this month. Traders are now forecasting just a five per cent chance of that, down from 11 per cent a day before, according to data from CME Group.Trending Bank of Canada sees senior departures as Carney pushes cuts Work December jobs report likely kills chances of Bank of Canada rate hike this year, economists say Economy Posthaste: How the upbeat outlook for the Canadian dollar likely just got trashed News Why HELOCs make a heck of a lot of sense in 2026 Mortgages A love letter to those who don’t believe in RRSPs Personal Finance Article contentBut traders nevertheless still largely expect the Fed to cut rates at least twice this upcoming year.Article content“As long as nothing’s interrupting further potential cuts in 2026 from the Fed, then the markets are going to respond positively to that,” Ludwick said.Article contentIn New York, the Dow Jones industrial average was up 237.96 points at 49,504.07. The S&P 500 index was up 44.82 points at 6,966.28, while the Nasdaq composite was up 191.33 points at 23,671.35. The S&P 500 climbed 0.6 per cent and topped its prior all-time high set earlier in the week.Article contentThe Canadian dollar traded for 71.96 cents US compared with 72.12 cents US on Thursday.Article contentThe February crude oil contract was up US$1.36 at US$59.12 per barrel.Article contentThis report by The Canadian Press was first published Jan. 9, 2026.Article content— With files from The Associated PressArticle contentCompanies in this story: (TSX:GSPTSE, TSX:CADUSD)Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada sees senior departures as Carney pushes cuts Work December jobs report likely kills chances of Bank of Canada rate hike this year, economists say Economy Posthaste: How the upbeat outlook for the Canadian dollar likely just got trashed News Why HELOCs make a heck of a lot of sense in 2026 Mortgages A love letter to those who don’t believe in RRSPs Personal Finance