| Index | Close | Week | Year to date |
|---|---|---|---|
| S&P/TSX Composite | 36,176.55 | 1.44% | 14.08% |
| Dow Jones Industrial Average | 52,002.41 | 0.67% | 8.20% |
| S&P 500 Index | 7,659.44 | -1.95% | 11.89% |
| Nasdaq Composite | 26,140.03 | -4.48% | 12.47% |
| 10-year Canadian Bond Yield | 3.84% | -0.02% | 0.42% |
| 10-year U.S. Treasury Yield | 5.09% | -0.15% | 0.91% |
| Canadian Dollar | US$0.7065 | 0.83% | -3.17% |
Prime Rate 4.45% |
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Weekly performance ended October 16, 2026.
Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury
Markets shifted as inflation concerns took hold
U.S. markets began the week with mixed results as investors looked ahead to major bank earnings and key inflation data. The S&P 500 slipped 0.1%, the Nasdaq fell 0.4% and the Dow gained 0.4%.
After closing for Monday’s Thanksgiving holiday, the TSX began its shortened trading week on a positive note Tuesday, gaining 0.9%. Telecommunications led the advance, with the sector rising 3%. Industry heavyweights BCE, Telus and Rogers Communications rose 3.25%, 2.9% and 3.1%, respectively. Energy and financial stocks also edged higher. In the U.S., markets moved modestly lower as investors assessed mixed results from the first round of quarterly bank earnings. The S&P 500 slipped 0.02%, the Nasdaq fell 0.2% and the Dow declined 0.4%.
The tone shifted sharply on Wednesday after U.S. inflation data showed price pressures increased in September, raising concerns about the outlook for interest rates. The S&P 500 fell 1.1%, its biggest one-day decline since July. The Nasdaq dropped 1.9% with interest-rate-sensitive technology and AI stocks leading the decline. The Dow ticked down just 0.1%. In Canada, the TSX slid 1.1%, weighed down by a 2.3% decline in technology stocks and a 4.2% drop in the heavily weighted materials sector.
Markets rebounded Thursday, though concerns about AI-related companies continued to weigh on tech stocks. Gains in health-care and consumer stocks helped the S&P 500 recover from early losses and finish 0.3% higher. The Dow rallied 1.1%, while the Nasdaq edged up 0.08%. In Canada, the TSX rose 1.55%, led by a materials rebound as gold prices gained about 2%. Technology stocks also recovered, rising 2.2%.
U.S. markets turned lower again Friday as a jump in oil prices and another tech-stock selloff weighed on sentiment. The Dow slipped 0.3%, the S&P 500 fell 1.1% and the Nasdaq dropped 2.15%, its biggest one-day decline since July 23. In Canada, strength in energy stocks helped the TSX edge up 0.1%. For the week, the S&P 500 fell almost 2% and the Nasdaq dropped 4.5%, their steepest weekly declines since June.
Big-bank earnings revealed mixed results
The U.S. corporate earnings season moved into high gear last week as several of the country’s largest lenders reported third-quarter results. On Tuesday, Citigroup topped profit expectations, supported by stronger wealth management earnings and a 9% year-over-year increase in investment-banking revenue to US$1.35 billion. Goldman Sachs exceeded profit expectations, helped by a 72% jump in equity-trading revenue to US$6.44 billion. Wells Fargo reported stronger-than-expected profit, although net interest income fell short of forecasts amid higher deposit costs and lower rates on some loans.
Similar contrasts emerged on Wednesday. JPMorgan Chase missed quarterly profit expectations for the first time in nearly three years. The result came even as revenue from its markets division rose 15% from last year and equity-trading revenue surged 49%. Morgan Stanley posted stronger-than-expected profit, with equity-trading revenue increasing nearly 41% to US$5.8 billion. Fixed-income trading revenue, however, declined 7.3%. Bank of America reported net income of US$6.93 billion, but a US$1.2-billion regulatory penalty negatively impacted its results. Market volatility prompted many investors to reposition their portfolios during the quarter, boosting trading activity and equity-trading revenue across several of the major banks.
U.S. inflation pressures increased
On Wednesday, the U.S. Bureau of Labor Statistics reported that the country’s annual inflation rate rose to 3.7% in September, up from 3.4% in August. The result raised questions about the interest-rate outlook. Higher gasoline prices contributed to the increase, jumping 9.1% and accounting for more than half of the rise in consumer prices during the month. Overall, the consumer price index (CPI) increased 0.6% in September, up from 0.4% in August. Excluding food and energy, annual core inflation rose to 2.6% from 2.4%, with prices up 0.3% on a monthly basis.
Producer-price data released Thursday added to the concerns. The producer price index (PPI) jumped 1.3% in September, its largest monthly increase since March 2022 and well above expectations for a 0.5% gain. The index was 6.3% higher on an annual basis, up from 5.6% in August. Energy costs had a significant impact, with producer energy prices rising 10.8%. Increases extended beyond energy, with services prices climbing 0.8% after a rise of 0.2% in August.
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. If you have questions, a Co-operators financial representative is always ready to help.
Canadian inflation data (October 19)
Canada’s annual inflation rate held steady at 3.0% in August, with higher gasoline prices a significant driver. Excluding gasoline, inflation rose 2.4% year over year, up from 2.2% in July. Investors will watch the September report for signs that price pressures are spreading and what the latest readings could mean for the Bank of Canada’s interest-rate outlook.
More important dates
- October 28: Bank of Canada and U.S. Federal Reserve interest-rate announcements
- November 26: U.S. markets closed for Thanksgiving Day