Canadian stocks rise, led by energy and tech after strong US job report

According to Priest, the strong jobs report suggests that an economic soft landing remains a possibility, despite previous rate hikes by the US Federal Reserve aimed at controlling inflation. “Overall, with the surprise in the jobs number and unemployment ticking down, it’s had a big impact,” Priest noted.

Before this report, Wall Street had been on edge following weaker employment data, which led to concerns that the Fed might have delayed its interest rate cuts for too long.

Some traders had speculated that the Fed could implement another half-percentage-point rate cut this year, after beginning the easing cycle with such a move last month.

However, with the improved jobs numbers, the Fed is now expected to take a more gradual approach to rate reductions through 2025, Priest said.

The S&P/TSX composite index in Canada finished the day up 194.33 points, closing at 24,162.83. In the US, the Dow Jones industrial average climbed 341.16 points, reaching a new record high of 42,352.75.