| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 36,553.92 | -0.18% | 15.27% |
| Dow Jones Industrial Average | 53,559.99 | 0.53% | 11.44% |
| S&P 500 Index | 7,711.76 | 0.49% | 12.65% |
| Nasdaq Composite | 26,402.42 | 0.85% | 13.60% |
| 10-year Canadian Bond Yield | 3.73% | -0.03% | 0.31% |
| 10-year U.S. Treasury Yield | 4.73% | -0.01% | 0.55% |
| Canadian Dollar | US$0.7200 | -0.92% | -1.32% |
Prime Rate 4.45% |
|||
Weekly performance ended August 28, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
Stock markets navigated earnings and trade uncertainty
Canada’s TSX gained 0.3% on Monday despite the announcement of new U.S. tariffs on a range of Canadian goods. Strength in financial and materials shares helped offset broader concerns about trade developments. In the U.S., chip stocks came under pressure ahead of Nvidia’s earnings report (scheduled for release after Wednesday’s market close). This pulled the Nasdaq down 0.8% and the S&P 500 down 0.3%. Meanwhile, the Dow added 0.3%.
Markets moved higher on Tuesday as bond yields retreated, easing some investor concerns about inflation and borrowing costs. The TSX rose 0.7%, supported by gains in financial stocks at the start of the Canadian bank earnings season. U.S. markets also advanced, with the Dow and S&P 500 each gaining 0.3%, while the Nasdaq climbed 0.7%. Canada’s retaliatory tariff announcement attracted attention, but investors were more concerned about corporate earnings and easing bond yields.
Momentum faded on Wednesday as investors returned their attention to trade developments and awaited Nvidia’s earnings report after the close. The TSX fell 0.4% while U.S. markets saw little change. The Dow slipped 0.2%, while the S&P 500 and Nasdaq fell marginally.
On Thursday, investors reacted to Nvidia’s latest quarterly results and another round of Canadian bank earnings. The TSX edged up 0.1%, supported by strength in financial shares following RBC, CIBC and TD earnings reports. In the U.S., technology stocks led the advance after Nvidia reported stronger-than-expected results and raised its revenue outlook, helping drive a 1.6% gain for the Nasdaq. The S&P 500 rose 0.7%, while the Dow added 0.2%.
Markets pulled back on Friday as investors digested comments from Federal Reserve Chair Kevin Warsh, who signalled that U.S. interest rates may need to rise further to bring inflation under control. The Dow slipped less than 0.1%, while the S&P 500 and Nasdaq declined 0.2% and 0.5%, respectively. The TSX fell 0.8% despite data showing Canada's economy grew at an annualized rate of 3.3% in the second quarter, its fastest pace in more than three years.
Canada and the U.S. exchanged new tariffs after trade talks broke down
Trade tensions remained a central focus for investors after negotiations between Canada and the U.S. collapsed late last week without an agreement. Over the weekend, the U.S. imposed tariffs of up to 50% on approximately $28 billion worth of Canadian products, affecting a broad range of industries.
Canada responded on Tuesday with what government officials described as a dollar-for-dollar package of retaliatory measures targeting roughly $28 billion worth of U.S. goods. The measures include tariffs ranging from 15% to 50% on a wide range of products, including steel, aluminum, appliances and clothing. The federal government also announced a $7.5 billion support package intended to help Canadian businesses and workers affected by the dispute.
While markets have remained relatively resilient so far, the latest escalation adds another layer of uncertainty to the economic outlook. Businesses on both sides of the border continue to assess the potential impact of higher trade costs and supply-chain disruptions, while investors are closely monitoring whether negotiations can resume in the weeks ahead.
Canadian banks reported strong earnings amid tariff uncertainty
Canada’s major banks delivered another solid round of quarterly results this week, with most institutions reporting higher profits and revenue.
Scotiabank, BMO, National Bank, CIBC, RBC and TD all reported earnings that generally exceeded analyst expectations, supported by strength in personal and commercial banking, wealth management and capital markets operations. Several banks also reported continued revenue growth and highlighted resilient credit performance despite ongoing economic uncertainty.
Bank executives acknowledged that the latest round of tariffs from Canada and the U.S. could create challenges for business investment and economic growth, while also emphasizing the resilience of the Canadian economy to date. Several also pointed to opportunities arising from efforts to diversify trade relationships, reduce interprovincial trade barriers and accelerate infrastructure investment.
Some institutions noted they have increased reserves to guard against tariff-related risks, while others stressed that their most trade-sensitive lending exposures remain relatively limited. Overall, bank leaders struck a cautiously optimistic tone, suggesting that while the path forward may be uncertain, businesses and consumers have so far adapted better than many expected.
Many factors influence markets
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.
Bank of Canada interest rate announcement (September 2)
Investors will closely watch the Bank of Canada’s interest rate decision on Wednesday. The central bank has held its benchmark interest rate at 2.25% since October 2025, but the outlook has become increasingly complex in recent weeks. Policy-makers must weigh the potential economic impact of escalating Canada-U.S. trade tensions against inflation that remains above the central bank’s 2% target. Investors will be looking for insights into the possible path for interest rates in the months ahead.
More important dates
- September 7: North American markets closed for Labour Day
- September 16: U.S. Federal Reserve interest rate decision
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