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Big Bank Earnings Are In: What They Reveal About Your Mortgage Stress

  August 26, 2026 Canada's biggest banks are in the middle of reporting Q3 2026 results, and so far the headline numbers look strong. BMO and Scotiabank both beat analyst estimates this week, and National Bank of Canada reported this morning. RBC, TD, and CIBC follow Thursday, closing out the sector's earnings season. But the number that actually matters to most Canadians isn't profit — it's what the banks are setting aside for loans that might go bad, and what they're saying about who's struggling to keep up. That's where the picture gets more interesting than the headlines suggest. The headline numbers BMO kicked off the week with adjusted profit up 22% year-over-year and return on equity climbing to 14%, with the bank reiterating its target of 15% ROE by the end of fiscal 2027. Scotiabank posted what CEO Scott Thomson called a record quarter: net income of $3 billion, up 21% year-over-year, with adjusted ROE hitting 14.2% — clearing the bank's own med...
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US stocks rebound from inflation shock as investors eye Fed comments, earnings



US stock futures rose on Wednesday, looking to recover from a sharp selloff triggered by hotter-than-expected inflation data that dashed hopes for interest-rate cuts before the summer.

Dow Jones Industrial Average ( ^DJI) futures added 0.2%, signaling a bounce back for the blue-chip index from a 500-point drop and its worst day since March 2022. Futures on the S&P 500 ( ^GSPC) put on roughly 0.4%, while those on the tech-heavy Nasdaq 100 ( ^NDX) jumped 0.5% — also on the heels of steep declines.

Investors were gripped by the wild fallout from a typo in Lyft’s ( LYFT) financial update late Tuesday. Shares in the ride-hailing company initially rocketed 67%, but the rally lost steam after Lyft corrected an error in its statement that boosted its profit outlook. The stock remained up a more modest 20% in premarket trading.

A new wave of earnings reports also could deliver some impetus, with Cisco ( CSCO ), Kraft Heinz ( KHC ), and Warren Buffett-linked Occidental ( OXY) among the big hitters on the list.

Comments by Fed officials Austan Goolsbee and Michael Barr in their appearances later in the day could provide more grist for the ever-present debate on rate timing.

Investors are coming to grips with the prospect of the Federal Reserve holding fire on rate cuts until later in the year — and a potential “no landing” scenario for the US economy.

The latest inflation reading showed consumer prices rose more than expected in January, increasing the odds of a “no landing” outcome, which would be a failed attempt of the Fed to quell inflation but, ultimately, would not result in a recession.

Bets on a March interest rate cut are now all but gone. Pricing on the CME FedWatch Tool now places a 39% chance the Fed cuts in May, down from a 67% chance just a week ago.

“In our view, a March cut is now firmly off the table and the chances of a May cut have significantly reduced. But we remain comfortable with our call for rate cuts to begin in June,” Bank of America US economist Stephen Juneau wrote in a research note on Tuesday.

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