TSX Sinks as Strong Jobs Data Lifts Rate Concerns

2026-06-05 20:57 By Isabela Couto 1 min. read

The S&P/TSX Composite Index fell 2.3% to close at 34,413 on Friday as stronger-than-expected employment data from Canada and the US pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve may keep interest rates elevated for longer.

Employment in Canada rose by 88,000 in May, far exceeding forecasts, while US payroll growth also surprised to the upside.

Meanwhile, fading hopes for a near-term resolution to the Middle East conflict and the reopening of the Strait of Hormuz added to inflation concerns.

Gold prices fell to their lowest level of 2026, triggering a sharp selloff in mining stocks.

Agnico Eagle lost 7.2%, Barrick shed 7.6%, and WPM dropped 9.3%.

Technology shares also came under pressure, tracking a plunge in US chipmakers after Broadcom reported AI-chip demand that fell short of lofty market expectations.

Shopify fell 5.4%, while Celestica plunged 12.3%.



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TSX Sinks as Strong Jobs Data Lifts Rate Concerns
The S&P/TSX Composite Index fell 2.3% to close at 34,413 on Friday as stronger-than-expected employment data from Canada and the US pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve may keep interest rates elevated for longer. Employment in Canada rose by 88,000 in May, far exceeding forecasts, while US payroll growth also surprised to the upside. Meanwhile, fading hopes for a near-term resolution to the Middle East conflict and the reopening of the Strait of Hormuz added to inflation concerns. Gold prices fell to their lowest level of 2026, triggering a sharp selloff in mining stocks. Agnico Eagle lost 7.2%, Barrick shed 7.6%, and WPM dropped 9.3%. Technology shares also came under pressure, tracking a plunge in US chipmakers after Broadcom reported AI-chip demand that fell short of lofty market expectations. Shopify fell 5.4%, while Celestica plunged 12.3%.
2026-06-05
TSX Drops on Hawkish BoC Expectations
The S&P/TSX Composite Index fell 1% to trade below 35,000 on Friday as investors assessed stronger-than-expected employment data from Canada and the US. Employment in Canada rose by 88,000 in May, far exceeding forecasts, while US payroll growth also surprised to the upside. The data pushed bond yields higher and reinforced expectations that the Bank of Canada and the Federal Reserve may keep interest rates elevated for longer, pressuring financial stocks and the broader index. Major banks traded lower, with BMO and Scotiabank both down nearly 1%. Gold prices fell, weighing on mining stocks, as Agnico Eagle and WPM shed nearly 3%, while Barrick lost more than 3.5%. Shopify also declined about 1% amid an AI-driven tech selloff following disappointing results from Broadcom. Meanwhile, uncertainty surrounding Middle East peace efforts continued to weigh on risk sentiment and duel inflationary pressures.
2026-06-05
TSX Futures Fall on BoC Rate Outlook
Futures tracking the S&P/TSX Composite Index edged lower on Friday as investors assessed stronger-than-expected employment data and ongoing uncertainty surrounding peace efforts in the Middle East. Employment in Canada rose by 88,000 in May, the largest increase since December 2024 and well above forecasts for a gain of 10,000. The robust labor market enforced expectations that the Bank of Canada may maintain a hawkish stance, pressuring financial stocks and the broader index. Meanwhile, Iran-backed Hezbollah rejected a new Lebanon ceasefire proposal, while Israel said it would not withdraw its troops, undermining US diplomatic efforts to halt the conflict and advance negotiations with Iran. Oil prices remained above $90 per barrel and bond yields moved higher, reviving concerns about inflation and borrowing costs. Gold prices fell, weighing on mining stocks.
2026-06-05