| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 31,923.52 | -3.69% | 0.67% |
| Dow Jones Industrial Average | 48,892.47 | -0.42% | 1.73% |
| S&P 500 Index | 6,939.03 | 0.34% | 1.37% |
| Nasdaq Composite | 23,461.82 | -0.17% | 0.95% |
| 10-year Canadian Bond Yield | 3.42% | 0.01% | 0.00% |
| 10-year U.S. Treasury Yield | 4.26% | 0.02% | 0.08% |
| WTI Crude Oil (U.S.$ per barrel) | 65.21 | 6.78% | 13.57% |
| Canadian Dollar | US$0.74 | 1.26% | 1.07% |
Prime Rate 4.45 % |
|||
Weekly performance ended January 30, 2026.
Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group
Stock markets were volatile
U.S. President Donald Trump’s threat to apply 100% tariffs on goods entering the U.S. from Canada, in response to Canada’s recent trade announcements with China, dampened investor sentiment at the start of the week. The TSX limped out of the gate and closed Monday’s trading session down 0.16%. Bay Street’s tone remained cautious on Tuesday, with central bank updates and high-profile corporate earnings reports looming later in the week. The TSX finished the day flat, with losses offset by gains in energy and mining stocks, as oil and precious metal prices soared. On Wednesday, the TSX gained 0.24% after the Bank of Canada held its policy interest rate steady and commodity prices continued to climb. But a sudden drop in gold and silver prices on Thursday caused a retreat, with the TSX losing 0.48%. In a social media post on Thursday evening, Trump threatened to decertify Bombardier’s aircraft from the U.S. market and apply 50% tariffs on all Canadian-made aircraft in retaliation for Canada “wrongfully, illegally, and steadfastly” refusing to certify American-made Gulfstream jets. Shares of Bombardier dropped nearly 10% in early trading on Friday, before paring losses to around 4% on the day. The sell off in precious metals also intensified on Friday after Trump announced former U.S. central bank official Kevin Warsh was his nominee to be the next Federal Reserve chair – a move investors anticipate will support a more stable U.S. dollar based on Warsh’s record (precious metals compete with the U.S. dollar as a safe-haven investment). Gold prices, which had gained 70% in the last year, dropped 10%, while silver tumbled 30%. The TSX, which has significant exposure to the mining sector, shed 1,000 points and turned in a 3.31% loss on the day – its worst daily performance since April 2025 when Trump announced his “Liberation Day” tariffs.
The major U.S. stock indexes started the week on a positive note. The broad-based Dow led the U.S. benchmarks higher with a 0.64% advance on Monday, while the tech-heavy S&P 500 and Nasdaq gained 0.50% and 0.43%, respectively. Tuesday brought mixed results: The S&P 500 rose 0.41% to close at a record high, and the Nasdaq shot up 0.92% after a tech stock rally. The Dow retreated 0.83%, as declines in the health-care sector weighed on performance after the Trump administration announced negligible increases in government payments to private insurance plans. On Wednesday, rising AI chip stocks helped the Nasdaq outperform its peers and close 0.17% higher. After surpassing the 7,000-point level for the first time in intra-day trading, the S&P 500 reversed course and finished the day with a 0.01% loss after the U.S. Federal Reserve (the Fed) maintained its key interest-rate level. Meanwhile, the Dow edged up 0.02%. Mixed earnings reports from the tech sector hindered returns on Thursday. The Dow added 0.11%, the S&P 500 slipped 0.13% and the Nasdaq fell 0.72%. On Friday, uncertainty over what Trump’s nomination of Warsh as Fed chair will mean to financial markets unsettled Wall Street. The bellwether S&P 500 dropped over 1% before closing with a 0.43% loss. The Nasdaq retreated 0.94%, while the Dow slipped 0.36%.
Central banks held rates steady; Trump named his pick for next Fed chair
On Tuesday, the Bank of Canada announced it was holding its key interest rate at 2.25% for a second consecutive decision, as widely expected. The central bank’s accompanying Monetary Policy Report noted that growth and inflation forecasts remained largely unchanged from October, projecting modest growth and inflation around 2%: “Canada continues to adjust to a new trade landscape. Affected businesses are reconfiguring their trade and seeking new suppliers and markets. As this adjustment proceeds, capital will start being reallocated and some workers will shift into new roles. This adjustment will take time, and growth will be restrained through the transition.”
In a separate announcement from south of the border on Tuesday, the Fed announced it was holding its policy rate steady – the first pause after lowering rates in three previous decisions dating to July 2025. The official statement noted that economic activity in the U.S. “has been expanding at a solid pace.” While this decision was widely anticipated by markets, it also signalled the Fed’s independence from political interference. President Trump has often been critical of the Fed and, in particular, its Chair Jerome Powell, for cutting rates too slowly. In recent weeks, the Trump administration has increased pressure on the Fed, with the Department of Justice launching a criminal investigation into testimony Powell gave to Congress about renovation costs of Fed buildings. Powell has characterized the investigation as a pressure tactic. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether, monetary policy will be directed by political pressure or intimidation,” Powell said earlier this month. With Powell’s term as Fed chair set to end in May, President Trump announced on Friday that Kevin Warsh was his nominee for the post. Warsh was a member of the Fed's board from 2006 to 2011 and is currently a fellow at the conservative Hoover Institution and a lecturer at the Stanford Graduate School of Business. During the 2008-2009 financial crisis, he was critical of low interest-rate policies but has been supportive of lowering rates in more recent public comments.
Big Tech earnings were in focus
Shares of Big Tech companies made waves toward the end of the week. After markets closed on Wednesday, Meta Platforms, Microsoft and Tesla – members of the “Magnificent 7” group of companies that heavily influence the major U.S. equity indexes – each reported financial results that beat analyst expectations. On Thursday, Meta shares surged 11% as investors bought into the company’s AI investment plans. Microsoft shares went the other direction, falling 10% over concerns about growth in its cloud business. After gains in early trading, Tesla shares lost momentum throughout the day and closed more than 3% lower. Late Thursday, it was Apple’s turn to share financial results that surpassed expectations, lifting shares of the iPhone maker 1% in after-hours trading. Strong sales of the iPhone 17 model caused revenue to surge 23% on an annual basis to US$85.27 billion.
A professionally managed portfolio provides advantages in an uncertain economic environment
No matter the news headlines or market conditions, a professionally managed portfolio comes with a major benefit: diversification. With a diverse portfolio, you have access to several different asset classes, geographies, and investment styles, which lessens your risk if one segment of the market suffers heavy losses. Portfolio managers have the expertise to adjust allocations as market conditions change. A Co-operators financial representative is always ready to help if you have questions or would like to review your plan.
Canadian and U.S. employment data (February 6)
On Friday, investors and policy-makers on both sides of the border will review January’s labour market figures as they continue to assess the strength of the Canadian and U.S. economies.
More important dates
- February 16: Canadian and U.S. stock markets closed
- March 2: Deadline for contributing to an RRSP for the 2025 tax year
- April 30: 2025 personal income tax filing deadline
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