| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 33,833.35 | -0.72% | 6.69% |
| Dow Jones Industrial Average | 49,526.17 | -0.17% | 3.04% |
| S&P 500 Index | 7,408.50 | 0.13% | 8.22% |
| Nasdaq Composite | 26,225.14 | -0.08% | 12.84% |
| 10-year Canadian Bond Yield | 3.70% | 0.23% | 0.28% |
| 10-year U.S. Treasury Yield | 4.59% | 0.21% | 0.41% |
| Canadian Dollar | US$0.73 | -0.48% | -0.33% |
Prime Rate 4.45% |
|||
Weekly performance ended May 15, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
Markets edged lower as inflation jitters eclipsed an AI rally
Stocks closed slightly higher on Monday, as AI optimism lifted markets and reporting from a strong Q1 earnings season eased off. As of Monday, 440 of the S&P 500 companies had reported earnings, with approximately 83% exceeding expectations. The S&P 500 and Nasdaq closed at record highs, gaining 0.19% and 0.10%, respectively. The Dow rose 0.19%. In Canada, the TSX climbed 0.18%, led by strength in materials and gold, with both sectors up more than 3%. Barrick Mining stood out, jumping 9% after reporting stronger-than-expected first-quarter profit.
The S&P 500 and Nasdaq pulled back from record highs on Tuesday, as higher-than-expected consumer price inflation data weighed on investor sentiment. The Dow edged up 0.11%, the S&P 500 fell 0.16% and the Nasdaq declined 0.71%. In Canada, the TSX finished 0.4% higher, supported by a 2.4% gain in the energy sector. Technology stocks lagged, with Shopify shares down 2.4%.
The U.S. benchmarks turned in mixed results on Wednesday. Gains in AI-related stocks helped investors look past elevated producer price inflation data. That news lifted the S&P 500 and Nasdaq by 0.58% and 1.20%, respectively, while the Dow dipped 0.14%. The TSX fell 0.7%, pressured by weakness in financials.
All four North American benchmarks advanced on Thursday as investors digested U.S. retail sales data and monitored developments from high-level U.S.-China talks. The S&P 500 gained 0.77% and the Nasdaq rose 0.88% to mark fresh closing highs. The Dow rose 0.75%, finishing just 0.3% below its all-time high. In Canada, the TSX climbed 0.7%, supported by gains in financials (1.6%), technology (2.0%) and energy (1.2%).
The rally stalled on Friday after a spike in oil prices reignited global inflation anxiety. The benchmark indexes all dropped sharply: the Dow fell 1.07%, the S&P 500 lost 1.24%, and the Nasdaq lost 1.54%. The TSX ended 1.3% lower. For the week, only the S&P 500 stayed positive and scored a seventh straight weekly gain.
U.S. inflation jumped in April
The U.S. Labor Department’s latest consumer price index (CPI) data showed a sharp rise in April, with inflation climbing 3.8% year over year (the largest increase in three years). Gasoline prices jumped more than 28% in the same time period, adding upside pressure. On a month-to-month basis, CPI increased 0.6%, down from 0.9% in March. Core inflation, which excludes food and energy, rose 0.4% month over month and 2.8% year over year, both slightly above expectations.
U.S. wholesale inflation also accelerated in April, with the producer price index (PPI) rising 6.0% year over year. The result marks its highest level in more than three years and was well above expectations. On a monthly basis, U.S. producer prices jumped 1.4%, reflecting sharp gains in energy costs tied to the ongoing conflict with Iran. Core producer prices, which exclude food and energy, increased 1.0% month over month and 5.2% year over year.
Commerce Department data on Thursday showed U.S. retail sales also rose in April, increasing 0.5% following a revised 1.6% gain in March.
Canada’s mining and auto industries were in focus
Barrick Mining Corp., one of the world’s largest gold producers, reported first-quarter profit on Monday that more than tripled from a year earlier. The Toronto-based company earned US$1.60 billion, up from US$474 million, while revenue rose to US$5.22 billion from US$3.13 billion. Gold prices reached record highs during the quarter, up roughly 63% year over year, as investors turned to safe-haven assets amid geopolitical tensions and growing expectations for interest rate cuts.
On Thursday, Honda Canada confirmed it will indefinitely suspend a planned $15 billion electric-vehicle complex in Ontario, citing evolving market conditions and softer demand. The project, which was expected to include four new plants and create about 1,000 jobs, had already faced delays, as growth in the EV market slowed. The announcement came alongside weak financial results, as Honda reported a US$2.7 billion full-year loss (its first-ever annual loss) largely driven by high electric-vehicle costs tied to its global strategy. The Japanese carmaker estimated total losses from its EV operations at US$16 billion.
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.
Canadian inflation data (May 19)
Canada’s inflation rate rose sharply in March, climbing to 2.4% from 1.8% in February. The increase was largely driven by a surge in gasoline prices linked to the Middle East conflict. Investors will closely watch April’s inflation data to determine whether price pressures continue to build or begin to stabilize.
More important dates
- May 25: U.S. markets closed for Memorial Day
- June 10: Bank of Canada interest rate decision
- June 16 to 17: U.S. Federal Reserve interest rate decision
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