Canadian Market Reaction

By 11:57 ET (16:57 GMT) the S&P/TSX 60 index was down 17 points, a 0.8% decline, reflecting investor concern over a fresh acceleration in domestic inflation.

Inflation Data

Statistics Canada reported that Canada’s annual consumer‑price index (CPI) rose to 3.1% in September, up from 3.0% in August and slightly below the 3.2% consensus forecast. Month‑over‑month, CPI increased 0.1% after a 0.1% decline in August. The rise was largely driven by energy costs, with gasoline prices up 27.8% year‑over‑year. Grocery prices rose 1.7%, the smallest annual gain since May 2024, while shelter costs increased 1.8%.

Bank of Canada Outlook

The Bank of Canada’s preferred underlying inflation gauges eased, with the CPI‑median falling to 1.9% and the CPI‑trim to 1.8%. Governor Tiff Macklem’s recent hawkish comments had earlier pushed markets to price in a higher probability of a rate hike later in the month, but the latest CPI data gave policymakers more leeway to assess U.S. trade developments and new tariffs before deciding. The inflation report is the final major consumer‑price reading before the Bank’s policy decision scheduled for October 28.

U.S. Market Overview

In the United States, the S&P 500 rose 0.8% to 7,720.00 points, the Nasdaq Composite jumped 1.6% to 26,561.70 points, and the Dow Jones Industrial Average edged up 0.1% to 52,058.21 points. Analysts at Vital Knowledge noted that the Nasdaq’s rebound was driven by expectations of a busy earnings week, after a prior week marked by concerns over debt‑financed AI infrastructure spending and higher‑for‑longer borrowing costs. Chip stocks were among the hardest hit, with the Philadelphia Semiconductor Index entering its longest losing streak since the 2008 financial crisis. CoreWeave (NASDAQ:CRWV) shed roughly 25% of its value, and Oracle also fell sharply. Upcoming earnings from Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA) were highlighted.

Oil Price Movement

Benchmark Brent crude futures slipped 1.9% to $107.38 a barrel, while U.S. West Texas Intermediate fell 1.7% to $97.14 a barrel. The retreat followed U.S. President Donald Trump’s decision to waive sanctions and tariffs on Russia, a move expected to increase Russian fuel supplies. Iran’s Foreign Minister also reiterated a proposal to reopen the Strait of Hormuz within seven days.

Gold Price Movement

Spot gold declined 0.6% to $4,139.97 an ounce and gold futures slipped 0.5% to $4,159.72 an ounce, ending the previous week down 0.7%. Traders increased bets that the Federal Reserve would skip a rate hike this month after remarks from Chair Kevin Warsh, with expectations that the Fed might raise rates in December. The Fed’s September hike was its first since 2023, aimed at curbing mounting inflationary pressures.

Additional Commentary

Scott Kanowsky contributed reporting. The article underscores that hotter inflation, driven by energy price spikes, revived concerns about tighter monetary policy in Canada, while oil price volatility and mixed signals from U.S. policy added uncertainty to commodity‑linked markets.