TSX falls on strong jobs data and interest rate fears
The S&P/TSX composite index fell 1.1% on Friday after Canada added 87,800 jobs in May and the unemployment rate dropped to 6.6%. This stronger-than-expected labor data alongside U.S. payroll gains reinforced expectations that central banks will maintain higher interest rates for a longer period.
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Canada stocks fell 1.1% on Friday morning as robust labor data from both the United States and domestic markets intensified expectations for prolonged restrictive monetary policy. The S&P/TSX composite index fell 1.1% to 34,805.40 points, erasing its weekly gains following the stronger-than-expected payroll figures. Investors are repricing interest rate paths as resilient employment data complicates the Bank of Canada's upcoming policy decision.
