, well below economists’ expectations for a gain of about 55,000 and marking a sudden deterioration in the labour market. The unemployment rate rose to 4.4% from 4.3%, while job gains for previous months were revised lower by a combined 69,000. Despite weaker hiring, wage growth remained firm, with average hourly earnings increasing 0.4% from the prior month and 3.8% year over year, slightly above forecasts. Cue the stagflation headlines.
Chip checks. The U.S. administration is considering new permit requirements for global exports of artificial intelligence chips, which would require companies to obtain approval from the Commerce Department before shipping advanced AI accelerators from firms such as Nvidia and Advanced Micro Devices. These accelerators are high performance chips designed to process the massive computing workloads required to train and run artificial intelligence models in large data centers. The proposal would significantly expand existing export controls that currently restrict shipments to certain countries, effectively positioning Washington as a gatekeeper for the global buildout of AI infrastructure. The news weighed on semiconductor stocks as investors assessed the risk that tighter export requirements could slow international data center expansion and add another layer of geopolitical friction to the AI supply chain. Stocks moved lower as weakness in semiconductor names detracted with the S&P 500 slipping –0.56%.
Don’t count out the Loonie. Amid the recent market volatility, the Canadian dollar has held up relatively well, supported by its close link to rising oil prices. As oil prices moved higher amid escalating tensions involving Iran, the loonie strengthened against several major currencies including the yen, euro, and British pound, reflecting Canada’s position as a major energy exporter. Strategists say the currency has been supported by improving terms of trade as higher oil prices boost Canada’s export revenues relative to its imports, helping offset some of the drag from tariffs and trade uncertainty. Looking ahead, however, analysts caution that upcoming negotiations to revisit the Canada U.S. Mexico Agreement (CUSMA) later this year could introduce renewed volatility for the currency, with risks tied to trade tensions, tariff threats, and broader structural issues in U.S.-Canada economic relations.
Strategic Partnership. Staying on the Canadian front, Canada and Japan announced a new strategic partnership that will expand cooperation across defence, energy, critical minerals, and advanced technologies such as artificial intelligence. As part of the agreement, the Royal Canadian Navy will increase joint exercises with Japanese forces, while Tokyo is exploring the possibility of military training with Canada in the Arctic. The announcement came during Carney’s visit to Tokyo, the final stop of a 10-day trip that also included India and Australia, as Canada looks to deepen economic and security ties in Asia amid rising U.S. protectionism under Trump.
Safe haven debate. The escalating conflict in the Middle East this week has reignited debate over which assets truly function as safe havens during market turmoil, with traditional refuges behaving unevenly. The U.S. dollar has performed best so far, rising about 1.5% as investors seek liquidity, even gaining against typical haven currencies like the Swiss franc and Japanese yen. Government bonds have failed to attract their usual defensive flows, as investors focus more on inflation risks and rising government borrowing, pushing yields higher rather than lower. Experts are noting that gold remains a strong long-term hedge despite short-term volatility, with prices rising this last year amid persistent concerns about inflation, geopolitics, and debt levels. Meanwhile, defensive equity sectors such as utilities and consumer staples have not provided much protection in the current selloff, partly because they had already rallied earlier and valuations had become stretched.
Did Trump ever have the power? Under the U.S. Constitution, Congress holds the sole authority to declare war and control military funding, while the president directs military operations once authorized. The War Powers Resolution of 1973 sets the normal process: the president should consult Congress before initiating hostilities, notify lawmakers within 48 hours of deploying forces, and obtain congressional authorization within 60 days or begin withdrawing troops within an additional 30-day period. Presidents may act without prior approval only if the U.S. is attacked or faces an imminent threat. In practice, however, administrations have frequently stretched these rules. Reagan (Grenada 1983), Clinton (Kosovo 1999), and Obama (Libya 2011) were all accused of bypassing the process. In the current case, Trump launched strikes against Iran without seeking congressional authorization, arguing the action was necessary to counter nuclear threats. While Congress has been briefed and attempted to pass a resolution to end the military action, the effort failed in the Senate, leaving the operation ongoing and raising renewed debate over the limits of presidential war powers.
A friendly reminder that clocks spring forward this weekend, which means we lose an hour of sleep but gain an hour of evening daylight. If you value those extra minutes of rest, consider this a PSA to head to bed a little earlier Saturday night. Consider it a small tradeoff for longer, brighter evenings in the months ahead. Also worth noting that when clocks fall back in November, not all of Canada may follow. British Columbia has moved toward permanent daylight-saving time, joining Yukon and Saskatchewan which already avoid seasonal clock changes. Alberta is again considering the move, while Ontario has legislation ready but is waiting for neighbouring jurisdictions like Quebec and New York to align before any final decisions are made. Until then, most Canadians will continue the twice-yearly clock shuffle, so enjoy the longer evenings and perhaps an extra coffee on Sunday morning.
Diversion: Nailed it
