Canadian stocks declined steeply on Friday

Index Update: After opening above yesterday's close, the benchmark S&P/TSX Composite Index, quickly turned lower and saw further downside throughout the session before finally closing at 29,850.89, down by 419.09 points (or 1.38%).

Macro Update: Data released by Statistics Canada today revealed that Canada's unemployment rate held steady at 7.1% in September, below market expectations of 7.2%.

Canadian employment rose by 60,400 jobs in September following the loss of 65,500 jobs in the prior month, well above market estimates of an increase of 5,000 jobs.

Top Movers: Among the individual stocks, Dye & Durham Ltd (8.57%), Shopify Inc (8.04%), Sylogist Ltd (7.74%), Curaleaf Holdings Inc (8.84%), and Baytex Energy Corp (8.91%) were the notable losers.

Our Stance: Momentum readings continue to highlight underlying strength, with the Relative Strength Index (RSI) standing at 54.09, indicating neutral-to-bullish momentum. On the downside, immediate support is seen near 29,600, a key level for bulls to defend. A decisive break below this base could open the door for deeper retracements toward 29,400 and 29,200.

Commodity Update: The U.S. dollar rebounded on Monday after an early selloff, as hopes grew that Washington might soften its latest trade measures against Beijing. Political uncertainty in France and Japan weighed on the euro and yen. Commodities strengthened, with gold up 1.58% to $4,063.40, silver rising 3.24% to $48.79, and copper gaining 1.78% to $10,600.00. Brent crude advanced 1.70% to $63.78, recovering from earlier losses.

Technical Update:

The S&P/TSX Composite Index declined by 419.09 points (−1.38%) in Friday’s session, closing at 29,850.89. The pullback reflected mild profit-taking; however, the broader technical structure remains constructive. From a trend perspective, the index continues to trade comfortably above its 50-period Simple Moving Average (SMA), which acts as dynamic support and reinforces the prevailing short-term uptrend. Sustained closes above this level suggests that buyers remain in control despite near-term volatility. Momentum readings continue to highlight underlying strength, with the Relative Strength Index (RSI) standing at 54.09, indicating neutral-to-bullish momentum. On the downside, immediate support is seen near 29,600, a key level for bulls to defend. A decisive break below this base could open the door for deeper retracements toward 29,400 and 29,200.