The S&P/TSX Composite Index closed at a new record high on Friday, extending its rally above the 36,000 mark as stronger-than-expected Canadian employment data lifted investor sentiment.
The index closed up 244.92 points, or 0.7%, at 36,381.23, with base metals leading gainers, up 2.9%, while the Information Technology sector rose 0.8%. Health Care led decliners, down 1.3%, and energy fell 1.1%.
In commodities, West Texas Intermediate (WTI) and Brent crude were mixed on Friday as uncertainty surrounding the reopening of the Strait of Hormuz kept investors focused on potential supply risks.
September WTI crude oil contract settled up $0.89, or 1.2%, at $78.18 per barrel, while October Brent oil was last seen down $0.43, or 0.5%, at $82.06 per barrel.
Meanwhile, December Comex gold futures gained 2.4%, or $102.70, to $4,402.30 per ounce.
In currencies, the US dollar weakened against the Canadian currency Friday afternoon after data showed the US economy unexpectedly lost 23,000 jobs in July, lowering expectations of an interest rate increase. The US dollar edged down 0.5% to C$1.3944 on last look.
July employment rose by 75,000 jobs in Canada, or 0.4% for the month, while the unemployment rate eased 0.1 percentage point to 6.4%, its lowest level since July 2024, Statistics Canada data showed. July's job gains topped the expected increase of 20,000 and a 6.5% unemployment rate forecast in a Bloomberg survey.
Employment growth was supported by strength across multiple sectors, with wholesale and retail trade adding 21,000 positions, while finance, insurance, real estate, rental and leasing, professional services, and construction sectors also recorded strong gains.
In stocks, ACT Energy Technologies (ACX.TO) closed down 0.5% at C$6.12 after reporting Q2 net income of C$0.06 per share compared with a loss of C$0.30 per share in the prior year period. The company said in Canada it expects a stronger third quarter and a busier second half than the same period last year.
Whereas goeasy (GSY.TO) closed up 6.3% at C$49.90 Friday, after reporting second-quarter adjusted earnings of C$1.02 per share late Thursday. This was down from C$4.40 per share a year earlier and below the FactSet consensus estimate of C$1.11 per share.