TSX closes up 184 points as markets rebound from AI rout

The S&P/TSX composite index closed up 183.82 points, or 0.52 per cent, at 35,789.09 on Friday, recovering part of Thursday’s AI-led sell-off, according to TMX Money and The Canadian Press. The Dow Jones industrial average fell 237.33 points, while the S&P 500 and Nasdaq composite rose.

The gain follows Thursday’s 736-point drop as an AI stock rout hit Toronto. The index remains below Wednesday’s close of 36,341.40, which came after a 809-point rally on the U.S. midterm results. TMX Money showed the index up 12.85 per cent so far in 2026.

Sadiq Adatia, chief investment officer of BMO Global Asset Management, told The Canadian Press that markets were first encouraged that the U.S. midterms were over, then began asking what the results mean for the economy, technology and oil. “We obviously saw a big pullback two days after the midterms, and you got a little bit of a bounce back today, but I wouldn’t say today is a convincing bounce back by any means,” Adatia said.

Investors are weighing the possibility that Democratic control of Congress could lead to pauses in construction of AI data centres, which would mean fewer purchases of AI chips and of the electricity and services that support them, The Canadian Press reported. Canadian investors also sorted through the federal 2026 budget, tabled Thursday, which focuses on business growth through tax measures and incentives meant to spur private-sector investment. Adatia called it a good budget.

Earlier in the day, the TSX edged lower as Canada’s jobless rate rose to 6.7 per cent. Corporate earnings reports have also drawn attention this week, with Adatia saying the earnings story “still has been good” in Canada, the United States and internationally.

The Canadian dollar traded for 70.86 cents US, down from 71.48 cents US on Thursday. The December crude oil contract rose 31 cents to US$90.83 a barrel, and the December gold contract fell US$38.60 to US$4,074.90 an ounce.

The TSX close is from TMX Money and The Canadian Press. U.S. index, commodity and currency figures are from The Canadian Press. Sector moves and individual movers were not confirmed on two sources and are left out.

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This article is for information only and is not investment advice. Speak to a licensed adviser before making investment decisions.