NASDAQ Surges 1.19% as S&P 500 Hits 7,723 on October 5

U.S. equity markets posted a broad-based rally on Monday, October 5, 2026, with the NASDAQ Composite climbing 1.19% to 27,191 and the S&P 500 gaining 0.73% to close at 7,723. Technology and growth names led the charge, extending a momentum run that has kept both indices elevated heading into Q4 earnings season. The TSX Composite also participated, rising 0.99% to 35,503, suggesting risk appetite was strong on both sides of the border.

USD/CAD at 1.4240: What It Means for Your US Holdings

For Canadian investors holding U.S.-listed equities or ETFs inside a TFSA or RRSP, the USD/CAD exchange rate of 1.4240 remains a critical variable. Every 1% move in the loonie relative to the greenback adds or subtracts roughly the same amount from your unhedged U.S. returns. At current levels, USD/CAD is historically elevated — meaning the Canadian dollar is relatively weak — which has been amplifying U.S. equity gains when converted back to CAD. A Canadian investor holding the S&P 500 via an unhedged ETF such as XUS would have seen today’s 0.73% U.S. gain translate to a slightly larger CAD return, all else equal. The risk: any snapback in the loonie would reverse that tailwind quickly.

Hedged vs. unhedged is a live debate at these levels. With USD/CAD above 1.42, some portfolio managers argue that unhedged exposure has already captured a meaningful currency premium and that locking in returns via a currency-hedged vehicle (such as XSP) makes sense for risk-averse RRSP holders. Investors with longer time horizons may still prefer to stay unhedged, betting that the loonie remains suppressed amid lower oil prices and a dovish Bank of Canada stance.

Tech Sector Drives the NASDAQ; Copper Signals Broader Risk-On

Today’s NASDAQ outperformance points squarely at large-cap technology and AI-linked names as the primary drivers. Semiconductor and software stocks have been the engine of 2026’s U.S. bull market, and Monday’s session reinforced that leadership. Separately, copper surged 2.04% to US$6.6245/lb — a signal that industrial demand expectations are improving globally, which historically correlates with broader equity risk appetite. This dual signal — tech leading equities while copper rallies — suggests the market is pricing in both a soft landing and continued AI-driven capital expenditure growth.

Not all sectors participated equally. WTI crude fell 1.19% to US$90.03/bbl, putting pressure on energy names even as Brent held near flat at US$102.34/bbl. Canadian investors with significant energy exposure on the TSX should note the divergence: U.S. tech is running hot while the commodity that backstops many Canadian equity benchmarks is softening at the margin.

Canadian Portfolio Implication: Trim the Hedge, Watch the Rotation

For Canadian investors, today’s data supports a modest overweight in unhedged U.S. equity exposure, particularly in technology-focused ETFs, for as long as USD/CAD remains above 1.40. The currency tailwind is real, and U.S. tech momentum has not shown meaningful signs of exhaustion. However, with Q4 earnings season imminent, position sizing matters — any earnings miss from a mega-cap name could reverse intraday gains sharply.

Investors should consider underweighting U.S. energy equities relative to their benchmarks given WTI’s softness, and watch whether the copper rally sustains — a continued move higher in copper would likely benefit Canadian materials names on the TSX more directly than their U.S. peers. Rebalancing between U.S. growth and Canadian resource exposure may be the most tactical move heading into mid-October.