Saturday, August 29, 2026 — Your quick rundown of the Canadian financial news that actually affects your wallet. 1. TSX Slides 280 Points as Fed Chair Warsh Talks Tough on Inflation The S&P/TSX composite dropped 280.33 points Friday to close at 36,553.92, even after Statistics Canada reported the economy grew at a blistering 3.3% annualized pace in Q2 — the fastest in more than three years. The pullback came after new U.S. Federal Reserve Chair Kevin Warsh used his first Jackson Hole keynote to warn that inflation "isn't slowing significantly" and that the Fed still has "work to do," reviving September rate-hike chatter south of the border. Gold miners got hit hardest as gold itself plunged more than $130 an ounce to close near $4,530, and Wall Street closed mixed-to-lower on the news. What it means for you: A hawkish Fed doesn't directly move Bank of Canada policy, but it does keep upward pressure on bond yields — the same yields that price fixed mo...
As investors braced for the U.S. Federal Reserve’s decision, North American stock markets experienced a mixed close. The Fed maintained its key interest rate at 5.25%-5.50%, leaving the future of rate cuts uncertain. Despite this, the S&P 500 and Nasdaq dipped, while the Dow Jones and S&P/TSX Composite saw modest gains.
Fed Chair Jerome Powell’s press conference offered a glimmer of hope as he dismissed the likelihood of an immediate rate hike, causing a surge in market optimism. He acknowledged the persistent issue of inflation but expressed confidence in the progress towards the 2% target.
The labor market showed signs of normalization, with job openings at a three-year low2. Meanwhile, the earnings season is more than halfway through, with a majority of S&P 500 companies surpassing consensus expectations.
In the corporate landscape, AMD’s AI chip sales forecast led to a 9% drop in its shares, while Amazon’s AI-driven cloud growth pushed its stock up by 2.2%. Johnson & Johnson plans to proceed with a multi-billion-dollar lawsuit settlement, and Starbucks faced a significant sales forecast cut.
The energy sector took a hit due to falling oil prices and a potential Middle East ceasefire, while uranium miners saw a boost from a U.S. ban on Russian imports. Canadian manufacturing activity continued to contract, reflecting ongoing economic challenges.
In summary, the market’s response to the Fed’s decision was a complex interplay of anticipation, relief, and sector-specific movements, highlighting the intricate dynamics of financial markets.
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