S&P/TSX composite ends higher, U.S. markets fall

TORONTO – Canada’s main stock index was up while markets in New York ended the week on a down note as a tech sell-off deepened and oil prices climbed on Friday.

The S&P/TSX composite was up 39.45 points at 36,176.55 on Friday, after triple-digit swings between gains and losses during the short trading week.

“Generally, just the inflation story is what’s weighing on markets today,” said Theresa Shutt, chief investment officer at Harbourfront Wealth Management.

Statistics Canada is set to report its latest inflation data for September on Monday. A Reuters poll of economists expects the annual rate of inflation rose to 3.2 per cent last month, up from three per cent in August, according to LSEG Data & Analytics.

Investor worries from potentially rising inflation — on both sides of the border — and concerns about the weaker job numbers released last week, shows “that the economy is under pressure,” Shutt said.

High oil prices helped boost the energy sector, as global oil supply continues to be under pressure without a deal between the U.S. and Iran to end the war.

On Friday, the December crude oil contract closed US$2.52 higher at US$99.02 per barrel.

“I don’t see that changing any time soon, particularly when you’re seeing renewed attacks and really growing doubts about any type of a real ceasefire,” Shutt said.

In New York, the Dow Jones industrial average was down 175.28 points at 52,002.41. The S&P 500 index was down 84.62 points at 7,659.44, while the Nasdaq composite was down 572.99 points at 26,140.03.

“It’s been a pretty choppy week for U.S. markets, particularly for chipmakers and other big tech stocks that are central to the AI industry,” Shutt said.

Investors are concerned that tech companies that relied on debt markets to fund growth may not be able to keep borrowing and spending, especially as U.S. bond yields skyrocket, she said.

“This was the biggest drag on the broader market,” Shutt said.

Micron Technology fell 5.6 per cent, Advanced Micro Devices dropped six per cent, Broadcom lost 4.5 per cent, and Intel gave up 5.8 per cent.

Among the other tech companies that finished in the red were Meta, which fell 3.7 per cent, and Google parent Alphabet, which was down 2.5 per cent.

Meanwhile, the latest inflation numbers in the U.S. have also upped the chances that the U.S. Federal Reserve will hike interest rates again — all of which are weighing on the broader markets, she said.

Back in Canada, the latest inflation data will give the central bank a look at how energy price pressures are influencing consumers ahead of its rate decision later this month.

“They’re somewhat in a policy trap where they’ve got some softening signs in the economy,” she said of the Bank of Canada.

“However, a lot of the inflation that it’s dealing with is imported through higher oil prices, and it’s something that they can’t necessarily control.”

Investors, meanwhile, were unfazed by Monday’s referendum vote in Alberta on whether the province should stay in Confederation or hold a second, binding referendum on splitting from Canada.

“There are other factors outside of Canada that are really impacting stock markets; and inflation; and the Iran conflict; and elevated geopolitical risk,” Shutt said.

The Canadian dollar traded for 70.65 cents US compared with 70.44 cents US on Thursday.

The December gold contract was up US$11.00 at US$4,181.10 an ounce.

This report by The Canadian Press was first published Oct. 16, 2026.

— With files from The Associated Press

Companies in this story: (TSX: GSPTSE, TSX: CADUSD)