North American markets rallied on Friday on U.S. jobs figures and a Canadian reprieve from U.S. President Donald Trump’s tariffs on steel and aluminum.
The much-anticipated job figures showed U.S. employers added 313,000 jobs in February, while the hourly wage grew a low-than-expected 2.6% compared with a year ago.
The hiring showed continued strength in the economy while the wage growth — lower than the 2.9% reported a month ago — tempered inflation fears, said Manulife Asset Management Ltd. portfolio manager Cavan Yie.
“The jobs data were very, very positive, and in combination with that, the wage or inflation data was also positive in that it was lower than expected. So we’re not seeing the same level of wage growth that we saw in the previous month,” Yie said. “The markets sold off several weeks ago on the fears of higher-than-expected inflation, and what that meant for company margins and the fed potentially raising more than expected this year.”
The job numbers, along with Trump indefinitely exempting Canada and Mexico from the metal tariffs, helped U.S. markets recover from recent losses.
Canada also posted positive jobs numbers Friday. The economy added 15,400 net new jobs last month and the unemployment rate edged down to 5.8 % — but the gains were due to a surge in part-time work that offset a heavy decline in full-time positions.
In New York, the Dow Jones industrial average was up by 440.53 points to 25,335.74. The S&P 500 composite index was up by 47.60 points to 2,786.57 and the Nasdaq composite index was up by 132.86 points to a record close of 7,560.81.
The S&P/TSX composite index closed up by 39.11 points to 15,577.81, led by energy and materials.
The Canadian dollar closed at US77.88¢, up 0.52 of a U.S. cent. The loonie got a boost after Canadian industries learned they would be exempt from the tariffs, said Yie: “There was a huge relief rally in the loonie, reflecting Canada’s exemption from aluminum and steel tariffs. The loonie had taken quite a dive in the face of those comment initially as Canada as well all know is a major steel exporter to the U.S.”
The April crude contract closed up by US$1.92 to US$62.04 a barrel and the April natural gas contract was down by US2¢ at US$2.73 per mmBTU.
The April gold contract ended up by US$2.30 to US$1,324 an ounce and the May copper contract was up by US6¢ to US$3.14 a pound.