| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 35,226.14 | -0.40% | 11.08% |
| Dow Jones Industrial Average | 52,485.03 | 1.04% | 9.20% |
| S&P 500 Index | 7,489.72 | 1.05% | 9.41% |
| Nasdaq Composite | 25,373.85 | 1.59% | 9.17% |
| 10-year Canadian Bond Yield | 3.65% | 0.05% | 0.23% |
| 10-year U.S. Treasury Yield | 4.75% | 0.06% | 0.57% |
| Canadian Dollar | US$0.7128 | 0.45% | -2.30% |
Prime Rate 4.45% |
|||
Weekly performance ended July 31, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
Stocks moved between record highs and a Fed-focused pull-back
North American stock markets started the week on a positive note, as easing geopolitical tensions and growing optimism for a strong earnings season supported investor sentiment. Canada’s TSX gained 0.6% on Monday, reaching a record closing high. On Wall Street, the S&P 500 edged 0.02% higher and the Dow advanced 0.51%, while the Nasdaq slipped 0.17%. Technology stocks drove much of the activity, with gains from Shopify (in Canada), Microsoft and Apple offsetting weakness in other sectors.
The TSX added 0.5% on Tuesday to reach another record close. Strength in technology shares, including Celestica and Constellation Software, helped lead the advance, while financials also moved higher. U.S. markets were mixed as investors rotated away from semiconductor stocks ahead of several closely watched earnings reports, including Apple, Amazon, Microsoft and Meta. The S&P 500 gained 0.21% and the Dow rose 1.03%. The Nasdaq declined 0.22%.
Markets turned sharply lower on Wednesday, as investors reacted to the U.S. Federal Reserve’s (The Fed) latest interest-rate decision and renewed tensions in the Middle East. Oil prices climbed roughly 7% after reports of military strikes in the region, reviving concerns about energy disruptions and inflation. The TSX fell 1.2%, with only the energy sector posting a gain. On Wall Street, the S&P 500 declined 1.5%, the Nasdaq lost 1.7% and the Dow dropped 2.2% (its worst daily performance since April).
Better-than-expected results from Microsoft, which surged more than 15%, sparked a tech-stock rally on Thursday that erased the previous session’s losses. The Dow advanced 1.19%, the S&P 500 gained 1.66% and the Nasdaq jumped 2.78%. In Canada, the TSX rose 0.5%, with gains in materials, financials and energy shares supporting the advance.
Tech strength continued to support Wall Street on Friday, with the Nasdaq rising 1.0%, the S&P 500 gaining 0.7% and the Dow advancing 0.5%. In Canada, the TSX fell 0.8%, as lower gold prices weighed on metal-mining shares. The materials sector dropped 3.0%, while Telus shares tumbled 11.3% after the company reported a quarterly loss. The TSX still finished July 1.1% higher, extending its monthly winning streak to four months.
The U.S. Federal Reserve held rates steady
As expected, the Fed left its benchmark interest rate unchanged on Wednesday, extending a run of five consecutive meetings without a policy change. While the decision surprised few investors, markets focused on the central bank’s continued emphasis on inflation, and signs of disagreement among policy-makers.
The Federal Open Market Committee kept its target rate in a range of 3.50% to 3.75%, though three voting members dissented in favour of an immediate quarter-percentage-point increase. The dissension highlighted a growing divide among policy-makers and fuelled speculation that rate increases could still be considered if inflation remains above the Fed’s 2% target.
In its policy statement, the Fed said economic activity continues to expand at a solid pace and labour market conditions remain stable. At his post-meeting press conference, Fed Chair Kevin Warsh reiterated that returning inflation to target remains the central bank’s priority. He acknowledged progress has been made but cautioned that bringing inflation fully under control will take time.
Corporate earnings reinforced confidence in tech stocks
Microsoft delivered one of the week’s most closely watched reports on Wednesday. Revenue from the company’s Azure cloud-computing division grew 43% year-over-year, exceeding analysts’ expectations. Annual Azure revenue also surpassed US$100 billion for the first time.
Meta Platforms reported second-quarter revenue of US$60.8 billion. The tally was ahead of analyst expectations of US$60.2 billion and reflected continued strength in its advertising business.
Apple and Amazon, also members of the “magnificent seven,” reported quarterly results on Thursday. Apple delivered stronger-than-expected results, with quarterly revenue of US$109.4 billion, up 16% from a year earlier. Amazon reported Q2 revenue of US$200.6 billion, surpassing expectations, while revenue from its Amazon Web Services cloud-computing division grew 37% year-over-year to US$42.2 billion, its fastest growth rate in more than four years.
In Canada, several companies delivered encouraging results. Technology manufacturer Celestica reported revenue of US$4.7 billion, up more than 60% from a year earlier. The company raised its outlook for 2026, citing strong demand for data-centre and AI-related infrastructure. Loblaw Cos. Ltd. also reported higher profit, with revenue rising to $15.27 billion from $14.67 billion a year earlier, supported by growth across both its grocery and pharmacy operations.
Be informed, but not influenced, by the news.
This week offered a reminder of how quickly market sentiment can shift. Investors weighed the Fed’s interest-rate decision, corporate earnings reports and renewed geopolitical tensions, reacting to each development. While staying informed is important, investment decisions are best made with your long-term goals in mind. If you have questions, a Co-operators financial representative is always ready to help.
Canadian and U.S. employment data (August 7)
Investors will watch the latest employment reports from Canada and the U.S. for further insight into labour-market conditions and the strength of economic growth. The data could also influence expectations for future interest-rate decisions on both sides of the border.
More important dates
- August 27 to 29: Jackson Hole Economic Policy Symposium
- September 7: North American markets closed for Labour Day
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