Investment update
Weekly insight into the marketplace.
August 18 to 22, 2025
Canada’s TSX and the Dow hit record highs
The North American benchmark stock indexes closed Monday’s trading sessions without much change, as declining share prices for tech-giants Meta Platforms and Microsoft weighed on the broader market. Tech stocks continued to falter on Tuesday, with shares of chipmakers Nvidia and Broadcom both slipping 3.5%. The tech-heavy S&P 500 and Nasdaq fell 0.59% and 1.46%, respectively. The broader-based Dow held on for a slight 0.02% gain after falling from an intraday record high earlier in the day. Cooler-than-expected Canadian inflation data helped pare losses on the TSX, which closed 0.35% lower for the day. Wednesday brought similar results for U.S. markets as the tech sell-off continued: the Dow finished essentially flat, while the S&P 500 and Nasdaq extended their losing streaks. The TSX advanced 0.20% as the energy and materials sectors got a boost from rising oil and gold prices. On Thursday, disappointing earnings from Walmart weighed on sentiment and all the major Wall Street stock indexes closed lower. The S&P 500 fell 0.40%, while the Dow and Nasdaq each shed 0.34%. In Canada, gains for energy and materials stocks continued provide a lift to the TSX which gained 0.20% and closed above the 28,000 level for the first time. Markets surged higher on Friday after comments from Fed chair Jerome Powell at the Jackson Economic Symposium renewed optimism for an interest-rate cut in September. The TSX and the Dow closed with record highs, while the S&P 500 and the Nasdaq added 1.5% and 1.9%, respectively.
Canadian inflation cooled in July
According to data released by Statistics Canada on Tuesday, the annual inflation rate fell to 1.7% in July. This was a decrease from 1.9% recorded in June, and slightly lower than economist forecasts. Gasoline prices fell 16.1% from a year earlier, reflecting the removal of the consumer carbon tax and lower crude oil prices following the Isreal-Iran ceasefire and OPEC+ supply increases. Prices for groceries rose 3.4% on an annual basis, up from 2.8% in June, led by higher costs for coffee products. Core inflation measures, which exclude energy and food costs and are monitored closely by the Bank of Canada, held steady. Immediately after the release, the Canadian dollar weakened and government bond yields fell, as investors priced in increased odds of a central bank interest-rate cut later this month.
The Fed chair’s speech was in focus
Dating back to 1978, The Federal Reserve Bank of Kansas City’s Economic Policy Symposium (which moved to Jackson Hole, Wyoming, in 1982), is one of the oldest annual central bank conferences in the world. This year’s event – attended by central bankers, policy-makers, academics, economists and news media – was themed: “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.” But with the current intersection of U.S. tariff policies (and retaliatory actions), mixed inflation signals, an upcoming interest-rate decision, and immense public pressure from President Trump, all eyes were squarely on The U.S. Federal Reserve (The Fed) chair Jerome Powell’s speech Friday morning. In his remarks, Powell suggested that while rising unemployment and inflation continue to present risks, the job market could weaken further. “The shifting balance of risks may warrant adjusting our policy stance,” he said, sending the strongest signal in weeks that the Fed is considering a rate cut. This sent the Wall Street benchmarks surging, with the S&P 500 spiking 1.6%.
The stock and bond market*
| Index | Close | Week | YTD |
|---|---|---|---|
| S&P/TSX Composite | 28,333.13 | 1.53% | 14.58% |
| Dow Jones Industrial Avg. | 45,631.74 | 1.53% | 7.26% |
| S&P 500 Index | 6,466.91 | 0.27% | 9.95% |
| Nasdaq Composite | 21,496.53 | -0.58% | 11.32% |
| 10-yr Canadian Bond Yield | 3.43% | -0.03% | 0.20% |
| 10-yr U.S. Treasury Yield | 4.26% | -0.07% | -0.32% |
| WTI Crude Oil (US$/barrel) | 63.66 | 1.37% | -11.24% |
| Canadian Dollar | US$0.72 | -0.35% | 3.83% |
Prime Rate 4.95 % |
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*Weekly performance ending August 22, 2025. Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group
Many factors influence the market. The best defence against market uncertainty is having – and sticking to – an investment strategy that’s geared toward your individual goals and objectives. If you have questions or decide it’s time to review your plan, our financial representatives are here to help.
U.S. inflation data (August 29): The U.S. Personal Consumption Expenditures (PCE) Index update for July will be released on Friday. Core PCE is the Fed’s preferred measure of inflation and markets are likely to react as investors consider how the latest data may impact the upcoming interest-rate decision.
Circle these dates
September 1: North American markets closed for Labour Day
September 17: Bank of Canada and U.S. Federal Reserve interest-rate announcements
The commentary in this report is based on current market conditions and market media sources available to the public and may change without prior warning at any time. The forecasts provided herein are not guarantees of future performance and include risks, uncertainty and assumptions. While Co-operators Life Insurance Company (“Co-operators”) believes these assumptions are reasonable, there is no guarantee they will be confirmed. This report is not a guarantee of future investment performance, nor should undue reliance be placed on this report. This report is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this report constitutes investment, legal, tax or other advice. The content in this report should not be relied upon in making an investment or other decision, and individuals should obtain relevant and specific professional advice and read the terms and conditions contained in the relevant offering documents carefully before any investment decision is made. Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. Co-operators is committed to protecting the privacy, confidentiality, accuracy and security of the personal information it collects, uses, retains and discloses in the course of conducting business. Please visit cooperators.ca/privacy for more information. Co-operators® is a registered trademark of Co-operators Group Limited and is used with permission. Investing in your future. Together.TM is a trademark of Co-operators Group Limited. If you are a client who has received this, and you have questions or want to discuss your investments, please contact your Financial Advisor.
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