Markets Rise as US Economy Holds Firm and Canada Slows (October 5 – 9, 2026, Recap)

Overview

The week of October 5–9, 2026, featured important economic data, corporate earnings, and market movements. US services activity continued to expand, while Canada’s economy showed signs of slowing growth and a weakening labor market. Meanwhile, US unemployment claims remained low, and crude oil inventories declined. Major US stock indices finished the week higher, alongside gains in oil and precious metals. Earnings reports from Levi Strauss, PepsiCo, and Delta Air Lines also provided insights into corporate performance, consumer demand, and ongoing cost pressures.

Major Economic Indicators and Events in Review

Monday, October 5

17:00 – USA: ISM Services PMI (USD)

The US services sector continued growing in September 2026, with the ISM Services PMI at 54.9%, slightly below August’s 55.4%. This marked the 27th straight month of expansion. Business activity and new orders remained strong, although growth slowed slightly. Employment improved, showing modest hiring growth after two months of declines. However, rising prices, especially fuel costs, tariffs, and supply chain delays remain major concerns. Overall, the services sector remains healthy, but inflation pressures continue to challenge businesses.

EUR/USD fell 0.25% on the day.

Tuesday, October 6

17:00 – Canada: Ivey PMI (CAD)

Canada’s Ivey PMI fell to 58.2 in September 2026, down from 64.3 in August and below market expectations of 65.2. Although a reading above 50 indicates continued economic growth, the decline suggests Canadian business activity is expanding at a slower pace. The weaker-than-expected data could increase pressure on the Canadian dollar and encourage the Bank of Canada to consider a more cautious approach to interest rates. Overall, the report points to slowing economic momentum in Canada.

USD/CAD declined by 0.37% on the day.

Wednesday, October 7

17:30 – USA: Crude Oil Inventories (USD)

US crude oil inventories fell by 3.2 million barrels to 424.1 million barrels in the week ending October 2, 2026, while total petroleum inventories dropped by 6.9 million barrels. Refineries increased activity, processing 16.5 million barrels per day, with capacity utilization reaching 92.7%. Crude oil imports also rose to 6.8 million barrels per day. Meanwhile, gasoline inventories increased slightly, while distillate stocks remained unchanged. Overall, the report suggests strong refining activity and tightening oil supplies, potentially supporting oil prices.

EUR/USD dropped 0.55% on the day.

Thursday, October 8

15:30 – USA: Unemployment Claims (USD)

US initial jobless claims fell by 2,000 to 197,000 in the week ending October 3, 2026, suggesting that layoffs remain relatively low. The four-week average also declined to 198,000, indicating continued stability in the labor market. Meanwhile, continuing unemployment claims, which measure people still receiving benefits, rose by 17,000 to 1.716 million. The insured unemployment rate remained unchanged at 1.1%. Overall, the report suggests a stable US labor market, with limited layoffs despite a slight increase in ongoing unemployment claims.

EUR/USD edged up 0.13% on the day.

Friday, October 9

15:30 – Canada: Employment Change (CAD)

Canada’s labor market weakened in September 2026, with employment falling by 68,000 jobs and the unemployment rate rising to 6.5%, up from 6.4% in August. Job losses were concentrated among young workers and women aged 25 to 54, particularly in education, healthcare, and manufacturing. Quebec and British Columbia experienced significant job declines, while Alberta recorded gains. Meanwhile, average hourly wages increased 2.3% compared to a year earlier. Overall, the report suggests growing weakness in Canada’s labor market despite modest wage growth.

USD/CAD rose 0.21% on the day.

Commodities

1. Crude Oil

• Crude oil prices rose 0.46% over the past week

2. Brent Oil

• Brent was up 1.88% compared to the previous week

3. Gold

• Gold (XAU/USD) ended the week on Friday with a gain of 1.31%

4. Silver

XAGUSD increased by 0.74% from last week

Stock Market

1. S&P 500 rose 1.21%

2. DJIA was up 1.01%

3. NASDAQ 100 increased by 0.32%

Top Gainers

1. WF Holding Limited (WFF) 411.02%

2. Jianzhi Education Technology Group Company Limited (JZ) 193.58%

3. The OLB Group, Inc. (OLB) 161.91%

Top Losers

1. Stablecoin Development Corporation (SDEV) -79.41%

2. Green Circle Decarbonize Technology Limited (GCDT) -79.17%

3. Darkiris Inc. (DKI) -75.19%

Company Earnings (October 5-9)

Wednesday, October 7: LEVI (Levi Strauss & Co.)

Thursday, October 8: PEP (PepsiCo, Inc.)

Friday, October 9: DAL (Delta Air Lines, Inc.)

Levi Strauss reported solid third-quarter results, with organic revenue rising 5%, driven by strong international sales and growth in Asia. Profitability improved, with gross margins reaching 66.2% and adjusted earnings increasing. However, direct-to-consumer sales remained weak, particularly in the US and Europe. The company raised its full-year organic revenue growth forecast to around 6% but faces higher distribution costs and operational challenges. Overall, Levi’s showed strong financial performance despite weaker store traffic and supply chain difficulties.

LEVI shares fell 5.89% over the past week.

PepsiCo reported mixed third-quarter results, with organic revenue rising 3.1%, supported by strong international sales and improving snack demand in North America. International revenue grew 8%, while global beverage and food sales volumes increased. However, weaker performance in North American soft drinks and rising production costs pressured profitability. The company lowered its fourth-quarter earnings outlook due to higher expenses and shrinking profit margins. Overall, PepsiCo showed steady sales growth but faces challenges in controlling costs and improving its beverage business.

PEP shares inched up 0.06% over the past week.

Delta Air Lines reported strong third-quarter results, with revenue rising 16% to $17.6 billion and pre-tax profit reaching $1.5 billion despite significantly higher fuel costs. Strong demand for premium seating, corporate travel, and loyalty programs supported growth. Delta expects revenue to increase around 20% in the fourth quarter, driven by strong bookings. However, rising operating costs and fuel prices remain challenges. Overall, Delta demonstrated solid financial performance and remains focused on reducing debt, improving efficiency, and maintaining long-term profitability.

DAL shares declined 2.28% over the past week.

Conclusion

Overall, the week of October 5–9, 2026, reflected a mix of economic resilience and emerging challenges. The US economy showed continued strength, while Canada’s weakening labor market raised concerns about its growth outlook. Stock markets and commodities recorded gains despite ongoing inflation and cost pressures. Corporate earnings highlighted solid revenue growth but also revealed operational challenges. Looking ahead, investors will closely monitor economic data, inflation trends, central bank policies, and corporate performance for further clues about market direction.