What's inside
Canada adds 60,400 jobs in surprise September surge
Trade tensions trigger sharpest TSX decline since April
OpenAI explores Canadian datacenter expansion
What happened: Statistics Canada reported that the economy added 60,400 jobs in September, crushing analyst expectations of just 5,000. The unemployment rate held at 7.1% as more Canadians entered the labour force to search for work. Manufacturing led the gains with 27,800 new positions, marking the sector's first growth since January 2025. The unemployment rate held steady at 7.1% as more Canadians rejoined the workforce. Ontario and Alberta drove the manufacturing rebound, with growth concentrated in auto parts, industrial machinery, and energy equipment fabrication.
Why it matters: Expected rate cuts may be delayed or reversed, which typically pressures bond prices and can weigh on rate-sensitive sectors like utilities, REITs, and telecom. However, the news is positive for consumer-facing companies as more jobs mean more spending power. Manufacturing-heavy companies like Magna International, Linamar, and CAE are in the spotlight, as are railways like CNR and CP that transport manufactured goods.
What happened: The S&P/TSX Composite Index suffered its sharpest weekly decline since April 2025. The trigger was renewed threats from the U.S. to impose higher tariffs on Chinese goods, reigniting fears of a global trade war. The escalation sent uncertainty rippling through markets worldwide.
Why it matters: Three major sectors bore the brunt of the selloff. The materials sector took a hit as fears of slowing global growth threatened demand for base metals, potash, and other commodities that Canadian miners and fertilizer producers export. Energy stocks declined on expectations that a trade war could dampen global oil consumption and hurt profitability across the sector. Industrials faced pressure from potential supply chain disruptions and reduced manufacturing activity, particularly affecting transportation companies moving goods and auto parts manufacturers supplying global markets.
What happened: Reports emerged this week that OpenAI is exploring a significant expansion into Canada, looking to secure substantial datacenter capacity and potentially anchor new large-scale facilities. The move would represent a major investment in Canada's digital infrastructure, though details on scale, location, and timeline remain unconfirmed.
Why it matters: If realized, this expansion could create ripple effects across multiple sectors. Energy and utilities companies, particularly those with renewable portfolios like hydroelectric assets in Quebec and British Columbia, could secure long-term power agreements to supply AI datacenters' massive electricity needs. Additionally, OpenAI's presence would validate Canada as a global AI hub and could attract further foreign investment in technology and infrastructure.