TORONTO – Stock markets in Canada and the U.S. set record highs on Friday, as investors sifted through employment data in both countries.
Adam 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.
He 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.
“There’s obviously some geopolitical instability right now, and that has led gold higher to start the year,” Ludwick said.
Canadian 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.
The 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.
“It feels like it’s in this cautious balance. You have job creation that continues, but you also have some slack,” Ludwick said.
Elsewhere 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.
“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.
The S&P/TSX composite index was up 234.29 points at 32,612.93 for a new record.
U.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.
“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.
The 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.
Friday’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.
But traders nevertheless still largely expect the Fed to cut rates at least twice this upcoming year.
“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.
In 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.
The Canadian dollar traded for 71.96 cents US compared with 72.12 cents US on Thursday.
The February crude oil contract was up US$1.36 at US$59.12 per barrel.
This report by The Canadian Press was first published Jan. 9, 2026.
— With files from The Associated Press
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
