| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 34,339.99 | 1.54% | 8.29% |
| Dow Jones Industrial Average | 48,977.92 | -1.31% | 1.90% |
| S&P 500 Index | 6,878.88 | -0.44% | 0.49% |
| Nasdaq Composite | 22,668.21 | -0.95% | -2.47% |
| 10-year Canadian Bond Yield | 3.13% | -0.09% | -0.29% |
| 10-year U.S. Treasury Yield | 3.97% | -0.11% | -0.21% |
| Canadian Dollar | US$0.73 | 0.34% | 0.47% |
Prime Rate 4.45% |
|||
Weekly performance ended February 27, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
The TSX outperformed Wall Street
Trade uncertainty weighed on investor sentiment at the start of the trading week, causing Canada's benchmark TSX to fall 0.12% on Monday. The tone improved on Tuesday, and the TSX notched a fresh closing high, after rising 0.57% on positive AI-related news. Shares of Toronto-based Thomson Reuters rose 11.38% after the company announced that one million professionals are using its CoCounsel AI technology for legal, tax, accounting and other corporate solutions. The positive momentum carried through Wednesday and Thursday, and the TSX advanced 1.56% over the two trading sessions, supported by positive earnings reports from Canada’s Bix Six banks. On Friday, the TSX stepped back 0.47% after Statistics Canada released gross domestic product data that showed the Canadian economy shrank by 0.6% in the fourth quarter on an annualized basis, which was lower than the Bank of Canada’s forecast.
U.S. stock markets stumbled out of the gate on Monday. Investor concern over AI disruption hit the tech and financials sectors hard after a Citrini Research report argued the AI boom could hurt the broader economy. The Dow shed more than 800 points and closed 1.66% lower, partly due to a 13% drop in IBM shares and a 7% loss for American Express. The Nasdaq closed 1.13% lower and the S&P 500 lost 1.04%. Tuesday saw the major indexes recover some of those losses. The tech-heavy Nasdaq led the benchmarks with a 1.04% gain on the day, boosted by an 8.8% rise in shares of chipmaker AMD after Meta Platforms agreed to use AMD’s graphics processing units in their AI data centres. Better-than-expected financial results released by retail-giant Home Depot helped the S&P 500 and Dow close 0.77% and 0.76% higher, respectively. The bounce back continued Wednesday in the wake of President Trump’s State of the Union speech the previous evening that touted the strength of the U.S. economy. Shares of AI players Nvidia and Oracle rose over 1%, helping the Nasdaq post a 1.26%. The bellwether S&P 500 gained 0.81% and the Dow added 0.63%. Nvidia remained in focus on Thursday after its latest earnings report. While the AI chipmaker’s profit of US$63 billion far exceeded analyst expectations, investors were skeptical over the longer-term outlook, with concerns mounting from delays in its $100-billion deal with OpenAI. Nvidia’s stock price dropped over 5%, accounting for nearly half of the S&P 500’s 0.54% daily loss. The Nasdaq fell 1.18%, while the Dow remained flat. Losses from the tech sector continued to pile up on Friday, and all the major stock market benchmarks closed lower. The Dow dropped 1.05%, the Nasdaq lost 0.92% and the S&P 500 shed 0.43%.
Canada received some tariff relief
On Saturday, February 21, U.S. President Donald Trump announced that he was placing a new 15% tariff on goods from other countries (including Canada). The decision came a day after the U.S. Supreme Court struck down his administration’s legal justification for reciprocal tariffs. On Tuesday, the Trump administration levied a new 15% “global tariff,” using a law not addressed by the court decision. It replaces the 35% tariff that applied to Canadian goods not covered under the Canada-United States-Mexico Agreement (CUSMA). Separate sectoral tariffs were not impacted by the ruling, and remain in place on Canadian steel, aluminum, copper, automotive parts, lumber and wood products. Canada-U.S. Trade Minister Dominic LeBlanc is scheduled to meet with U.S. Trade Representative Jamieson Greer later this week in Washington, D.C., to prepare for the mandatory review of CUSMA. Speaking to the Canadian Club Toronto on Thursday, LeBlanc said he felt Canada was close to a deal on sectoral tariffs in the fall, but an anti-tariff TV ad produced by the Ontario government derailed progress. Leblanc added that Canada is ready to resume those discussions in parallel with the CUSMA review.
Canada’s major banks reported strong earnings
First-quarter earnings reports from Canada’s Big Six banks exceeded analyst expectations and helped keep the TSX at record levels during the week. On Tuesday, Scotiabank reported higher profits across all its businesses, with net income approaching $2.3 billion in the quarter, up from $993 million the previous year. On Wednesday, BMO reported its net income reached nearly $2.5 billion, up 16% from the previous year, as its businesses delivered record revenue with less money set aside to cover potential loan losses. National Bank reported $1.25 billion in net income, up from $997 million a year earlier, with its recent acquisition of Canadian Western Bank contributing to the positive performance. On Thursday, TD, CIBC and RBC took turns in the spotlight. TD said its Canadian personal and commercial banking division brought in net income of $2.04 billion, a 7% increase over the prior year, while adjusted net income for its U.S. banking operations was $1 billion. CIBC reported a profit of nearly $1 billion dollars above the same period last year, as record revenue rolled in from all its units. RBC, Canada's largest bank, reported 13% year-over-year growth to almost $5.8 billion.
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.
U.S. employment data (March 6)
Investors will closely watch the release of February’s non‑farm payrolls and unemployment data, along with January’s retail sales figures, on Friday. These results will likely factor into the Fed’s interest‑rate decision next month.
More important dates
- March 2: Deadline for contributing to an RRSP for the 2025 tax year
- March 18: Bank of Canada and U.S. Federal Reserve interest rate announcements
- April 30: 2025 personal income tax filing deadline
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