| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 36,730.27 | 0.96% | 15.83% |
| Dow Jones Industrial Average | 53,732.41 | -0.56% | 11.80% |
| S&P 500 Index | 7,785.76 | 0.36% | 13.74% |
| Nasdaq Composite | 26,729.16 | 0.14% | 15.00% |
| 10-year Canadian Bond Yield | 3.68% | 0.04% | 0.26% |
| 10-year U.S. Treasury Yield | 4.68% | 0.03% | 0.50% |
| Canadian Dollar | US$0.7207 | 0.49% | -1.22% |
Prime Rate 4.45% |
|||
Weekly performance ended August 14, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
Stock markets rose on strong earnings and inflation data
The major North American stock indexes got off to a mixed start last week, as investors weighed corporate earnings and looked ahead to Wednesday's U.S. inflation report. Canada's TSX gained 0.2% on Monday to reach another record closing high, supported by strength in energy as oil prices moved higher. In the U.S., losses in the tech sector created headwinds. The Dow and S&P 500 each slipped 0.1%, while the Nasdaq declined 0.3%.
The TSX edged up 0.1% on Tuesday, helped by gains in industrial and utility shares. Canadian airline Cargojet was among the standout performers after reporting stronger-than-expected quarterly results. U.S. stocks moved lower again, with the Dow falling 0.3%, the S&P 500 declining 0.3% and the Nasdaq shedding 0.6%. Tech stocks remained under pressure as investors reassessed AI-related stocks.
Stock markets posted mixed results on Wednesday following the release of the latest U.S. inflation data. The TSX rose 0.5%, led by gains in materials and financial shares. Air Canada surged more than 12% after announcing the sale of a minority stake in its Aeroplan loyalty program. On Wall Street, the S&P 500 gained 0.3% and the Nasdaq advanced 0.5%, while the Dow was little changed. Tech stocks led the advance after results from AI infrastructure companies CoreWeave and Super Micro Computer reassured investors that demand tied to AI remains strong.
On Thursday, the TSX gained 0.3%, supported by strength in the tech sector, while U.S. markets also moved higher. The S&P 500 rose 0.7% to a record closing high and the Nasdaq advanced 0.8%, while the Dow added 0.1%. Investor sentiment was supported by a softer-than-expected U.S. producer price inflation report, which reinforced expectations that the Federal Reserve (the Fed) may leave interest rates unchanged at its next meeting. Tech stocks continued to lead the advance despite Cisco Systems falling more than 8% after its quarterly results failed to impress investors.
Markets pulled back on Friday after weaker-than-expected U.S. retail sales data raised fresh questions about the pace of economic growth. Statistics from the U.S. Census Bureau showed retail sales declined 0.6% in July, prompting concerns that consumer spending may be slowing. The Nasdaq fell 0.4%, while the S&P 500 and Dow slipped 0.2% and 0.1%, respectively. In Canada, the TSX closed 0.1% lower as investors reacted to the U.S. economic data.
U.S. inflation eased in July
Inflation data suggested price pressures may be moderating in the U.S. despite recent increases in energy costs. The U.S. Consumer Price Index rose 3.4% year-over-year in July, down slightly from 3.5% in June and in line with economists' expectations. On a monthly basis, prices increased just 0.1%.
Measures of underlying inflation also improved. Core inflation, which excludes the more volatile food and energy categories, slowed to 2.5% from 2.6% the previous month. The easing was supported by lower gasoline prices and slower increases in shelter costs. Grocery prices also showed signs of stabilization during the month.
The report provided some relief to investors following recent concerns that higher oil prices and trade-related cost pressures could push inflation higher. It also arrived less than a week after disappointing U.S. employment data complicated the outlook for policy-makers. While inflation remains above the Fed's 2% target, the latest figures reduced expectations that the U.S. central bank may need to raise interest rates at its next meeting. Markets responded positively, particularly in the tech sector, as investors grew more confident that borrowing costs may hold steady in the near term.
Canada-U.S. trade negotiations intensified ahead of a key deadline
Trade discussions between Canada and the U.S. intensified last week as negotiations continued ahead of the August 19 deadline for proposed new U.S. tariffs on a broad range of Canadian goods.
Canadian and U.S. officials held multiple meetings in Washington throughout the week to reach a negotiated solution before the deadline. Reports suggested both sides exchanged new proposals in recent days, but significant differences remain. Canadian negotiators are seeking relief from existing tariffs on products including steel, aluminum, lumber and automobiles, while also working to avoid the implementation of additional duties next week.
The proposed measures would add to a series of trade actions announced in recent months and could affect hundreds of Canadian export products. Negotiators are also discussing broader issues, including energy, critical minerals and the future of the Canada-United States-Mexico Agreement (CUSMA), which is facing increased scrutiny following recent decisions by the U.S. administration.
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. Staying invested – and continuing to invest – throughout market fluctuations is the best way to capitalize on probable market recoveries. If you have questions, a Co-operators financial representative is always ready to help.
Canada-U.S. trade negotiation deadline (August 19)
Trade talks between Canada and the U.S. will remain in focus as the August 19 deadline approaches for proposed new U.S. tariffs on a broad range of Canadian goods to take effect. Investors will watch for signs of progress toward a negotiated agreement, particularly on issues involving existing tariffs, cross-border trade and the future of CUSMA. The outcome could have implications for business confidence, economic growth and investor sentiment on both sides of the border.
More important dates
- August 27 to 29: Jackson Hole Economic Policy Symposium
- September 2: Bank of Canada interest rate announcement
- September 7: North American markets closed for Labour Day
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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 Financial Investment Services Inc. and Co-operators Life Insurance Company (“Co-operators”) believe 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.
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