Investment update
Weekly insight into the marketplace.
August 4 to 8, 2025
Tech giants gave markets a boost
U.S. markets rallied on Monday while Canada’s TSX was closed for the Civic Holiday. The Dow jumped 1.34%, recovering losses from the prior session. The S&P 500 had its best day since May, climbing 1.47%, and the Nasdaq surged 1.97%. On Tuesday, the TSX roared out of the gates, rising 2.03% to close at a record high. Wall Street lost steam, however, with all three major indices retreating after ISM data showed manufacturing slowed in July. Reports that President Donald Trump planned 250% tariffs on pharmaceutical imports further weighed on sentiment. The Nasdaq led losses, finishing the day down 0.65%. Wednesday brought gains on both sides of the border. The TSX rose 1.27%, boosted by a 21.5% jump in Shopify shares after strong quarterly results. In the U.S., markets rallied on news that Apple would invest another US$100 billion in American manufacturing, lifting its total planned U.S. investments to US$600 billion over the next four years. The Nasdaq and S&P 500 gained 1.21% and 0.73%, respectively, while the Dow inched up 0.18%. On Thursday, the TSX slipped 0.76% as consumer discretionary losses outweighed gains in materials, utilities and telecoms. U.S. markets were mixed: the Nasdaq rose 0.35% on strength in Nvidia and Apple, while the S&P 500 dipped 0.08% and the Dow fell 0.51%. The TSX ended the week with a flat performance on Friday following a disappointing employment update from Statistics Canada. The Nasdaq surged 0.98% to a record closing level of 21,450.02 as Apple shares continued to climb, bringing the iPhone-maker’s weekly gain to 13%. The S&P 500 climbed 0.78% to just below its most recent record level. The Dow closed 0.47% higher.
Trump followed through on global tariff threats
Just after midnight on Thursday, U.S. tariffs ranging from 10% to 50% on goods from more than 60 countries took effect, marking 200 days since President Trump’s return to the White House. Trading partners that recently reached agreements with Washington — including the EU, Japan, and South Korea — now face 15% tariffs on most goods. Countries without deals, such as Switzerland and Brazil, are subject to steeper duties of up to 50%. These measures follow the previously announced 35% tariffs on Canadian goods not covered by the Canada-United States-Mexico Agreement, as well as sector-specific tariffs on steel, aluminum, copper, and automobiles. On social media, Trump celebrated: “Billions of dollars in tariffs are now flowing into the United States of America!” and “Tariffs are flowing into the USA at levels not thought even possible!”
Employment data was in focus
Strong corporate earnings and optimism that central banks may soon be ready to cut interest rates helped lift North American markets through the week. Still, investors kept a close eye on the potential impact tariffs could have on economic growth and jobs. On Thursday, the U.S. Department of Labor reported that weekly jobless claims rose by 7,000 but remained at healthy levels — easing some investor concerns sparked by last month’s disappointing employment report. That report showed U.S. job growth in July came in far lower than expected and prompted President Trump to fire the head of the Department of Labor’s statistics division over allegations of political bias, adding yet another layer of uncertainty. On Friday, StatsCan reported that the economy lost 41,000 jobs in July, and the unemployment rate held at 6.9%, a multi-year high.
The stock and bond market*
| Index | Close | Week | YTD |
|---|---|---|---|
| S&P/TSX Composite | 27,758.68 | 2.73% | 12.26% |
| Dow Jones Industrial Avg. | 44,175.61 | 1.35% | 3.83% |
| S&P 500 Index | 6,389.45 | 2.43% | 8.63% |
| Nasdaq Composite | 21,450.02 | 3.87% | 11.08% |
| 10-yr Canadian Bond Yield | 3.38% | -0.00% | 0.15% |
| 10-yr U.S. Treasury Yield | 4.27% | 0.04% | -0.31% |
| WTI Crude Oil (US$/barrel) | 63.88 | -3.64% | -10.93% |
| Canadian Dollar | US$0.73 | 0.33% | 4.60% |
| Prime Rate 4.95 % | |||
*Weekly performance ending August 8, 2025. Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group
Focus on the long term:If your investment goals, risk tolerance and time horizon haven’t changed, your current investing plan is likely on the right track. It’s important to look past short-term ups and downs and focus on your long-term prospects. If you have questions, a financial representatives is always ready to help.
U.S. inflation data (August 12): Markets are likely to react on Tuesday following the release of U.S. consumer price figures for July as investors factor the latest data into their interest-rate expectations.
Circle these dates
August 21 to 23: Jackson Hole Economic Policy Symposium September 1: North American markets closed for Labour Day September 17: Bank of Canada and U.S. Federal Reserve interest-rate announcementsThe 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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