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Weekly Market Snapshot: Mideast Tensions and Chip Selloff Rattle Global Markets (July 13–17)

  Week of July 13–17, 2026 It was a rough week to be a tech investor and a good week to own oil. Escalating conflict between the US and Iran pushed crude sharply higher and rattled global markets, while a fresh wave of selling in semiconductor stocks dragged US and Asian indices lower. Closer to home, the Bank of Canada held its key rate steady, and the TSX—less exposed to chipmakers—held up noticeably better than its US and Asian peers. Here’s how the week broke down across every major market, and what it means for your wallet. 🇨🇦 Canada: TSX Day Close Change Mon, Jul 13 35,252.72 -0.15% Wed, Jul 15 (BoC day) 35,416.20 +0.27% Thu, Jul 16 35,340.15 -0.21% Fri, Jul 17 ~35,262 -0.22% Week total (Fri-to-Fri) — ~flat (about -0.1%) The TSX had a choppy but ultimately quiet week compared with its global peers. Monday's session opened with the Strait of Hormuz blockade headlines and closed lower. Wednesday brought a relief rally after the Bank of Canada's rate hold, with financials ...
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Diverging Paths: Bank of Canada Holds as Fed Cuts Rates

 

Tiff Macklem, Governor of the Bank of Canada, holds a press conference at the Bank of Canada in Ottawa on Wednesday, Oct. 29, 2025.


In a striking display of policy divergence, the Bank of Canada (BoC) is widely expected to hold its benchmark interest rate steady at 2.25% during its final meeting of 2025, while the U.S. Federal Reserve (Fed) is poised to deliver another quarter-point cut, lowering its target range to 3.75%–4.00%.

The BoC’s decision reflects a Canadian economy that has shown resilience in recent months. Strong job gains, steady wage growth, and a 2.6% annualized GDP increase in Q3 have bolstered confidence that inflation can be guided toward target without further easing. Financial markets have placed odds of nearly 93% in favor of a rate hold, signaling broad consensus among economists.

By contrast, the Fed faces a more complex backdrop. Despite lingering inflation concerns, the U.S. economy has experienced a slowing labor market and uneven growth, prompting policymakers to lean toward additional cuts. Analysts expect this to be the third consecutive reduction in 2025, though divisions within the Fed remain sharp, with some officials warning against easing too aggressively.

This divergence underscores the different economic trajectories of the two countries. Canada’s stronger-than-expected labor and productivity data have given the BoC room to pause, while the U.S. central bank is under pressure to support growth amid signs of weakness. For investors and businesses, the split could mean currency fluctuations, trade implications, and shifting capital flows as monetary conditions diverge across the border.

Looking ahead, economists suggest the BoC may remain on the sidelines well into 2026, while the Fed could continue trimming rates if economic softness persists. The contrasting moves highlight how national economic conditions drive central bank decisions, even in closely linked economies.

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