TSX Closed for Victoria Day — What Moved Markets Before the Long Weekend

 

A global bond rout, stalled US-Iran talks, and a surge past US$101 oil rattled Bay Street on Friday. Here's your full catch-up.

Monday, May 18, 2026  ·  Canadian Money Brief  ·  Next TSX session: Tuesday, May 19

Indicator	Last Price	Change	As of
S&P/TSX Composite	33,833	▼ 1.27%	Fri May 15
CAD / USD	0.7273	▼ 0.24%	Fri May 15
WTI Crude Oil (USD/bbl)	$101.02	▲ 4.23%	Fri May 15
Gold (USD/oz)	$4,483	▼ 2.88% (wk)	Fri May 15
Bitcoin (CAD)	$107,789	▲ 0.18%	Fri May 15

TSX Hits 10-Day Low as Bond Rout Rattles Bay Street

Canadian markets head into a long weekend on a sour note. The S&P/TSX Composite Index closed at 33,833 on Friday — down 434 points, or 1.27% — its lowest level in ten trading sessions. The sell-off was broad-based, driven by a sharp global bond market rout that pushed Canada's 10-year government bond yield to its highest level in roughly two years, and geopolitical turbulence in the Middle East that lit a fire under oil while dousing enthusiasm for equities and precious metals alike.

The TSX is closed today, Monday, May 18, for Victoria Day. Trading resumes Tuesday morning.

Miners Lead Losses; Energy Bucks the Trend

The divergence between Canada's two biggest export sectors was stark on Friday. Mining and precious metals shares were hammered as rising U.S. Treasury yields pushed the dollar higher and reduced the appeal of gold. Agnico Eagle fell 6.2%, Barrick Gold shed 5.8%, and Wheaton Precious Metals dropped 6.1%. The iShares S&P/TSX Global Gold Index ETF (XGD.TO) lost 6.67% on the session — its worst single-day performance in months.

Energy was the lone bright spot. With U.S.-Iran talks visibly breaking down — and weekend reports of strikes on energy infrastructure in the Persian Gulf, including a facility in the UAE — crude oil surged past the US$101 per barrel mark, a gain of more than 4% on the day. Suncor added 2.5% and Canadian Natural Resources gained 1.2%, helping lift the S&P/TSX Capped Energy Index by about 2%.

Banks and Financials Under Pressure

Canada's big banks couldn't escape the bond-yield whiplash. Royal Bank of Canada and TD Bank each shed more than 1%, and Brookfield fell roughly 4%, dragging the financial sector lower. Rising long-term rates compress lending margins and weigh on valuations for dividend-paying stocks — a double-headwind for a sector that makes up nearly a third of the TSX's weighting.

The Loonie Dips; Gold Hits March Low

The Canadian dollar edged lower, closing Friday at 72.73 cents U.S., weighed down by risk-off sentiment and a strengthening U.S. dollar after hotter-than-expected U.S. inflation data effectively ruled out any Federal Reserve rate cuts in 2026 and rekindled chatter about a potential rate hike before year-end.

Gold, which had been a standout performer for much of the past year — up more than 41% year-over-year — dropped to around US$4,483/oz, its lowest level since March. The precious metal has now given up roughly 5.2% over the past four weeks as inflation fears and bond yields work against it.

Bank of Canada: Patient, But Watching Closely

Minutes from the Bank of Canada's April policy meeting, released earlier last week, showed that policymakers felt they could afford to remain patient on rates — but explicitly acknowledged that conditions could change quickly. With oil above $100, bond yields surging, and stagflation concerns back on the table, the BoC's next decision on June 10 will be closely watched. Futures markets had been pricing in at least one more cut this year; that view is now increasingly in doubt.

For Your Wallet: Gas, Groceries & Banking Fees

On the policy front, Ottawa's Spring Economic Update 2026 continues to roll out measures aimed at easing the cost-of-living squeeze. The removal of the consumer carbon price has brought gas prices down by roughly 18 cents per litre across most provinces, while a temporary suspension of the federal fuel excise tax is adding another 10 cents per litre in savings at the pump. More than 12 million Canadians are set to receive hundreds of dollars through the new Canada Groceries and Essentials Benefit, and new rules cap non-sufficient funds (NSF) fees at $10 — a win for anyone who's ever been stung by a bank charge on an overdrawn account.

What to Watch When Markets Reopen Tuesday

• Oil prices: WTI crossed $101 Friday and was trading above that level Monday morning. Any escalation — or surprise de-escalation — in the Strait of Hormuz will move energy stocks sharply.
• Global bond yields: Japanese and European bonds extended their selloff into Monday. If Canada's 10-year keeps climbing, expect more pressure on financials and rate-sensitive real estate.
• Gold's floor: The metal is testing support near US$4,500. A break below could deepen losses for the TSX's major miners.
• Bank of Canada (June 10): Stagflation concerns are mounting. Friday's data puts the BoC in a difficult spot heading into its next meeting.
• CAD/USD: The loonie is hovering near the 72-cent range. Watch for any shift in Fed language that could send it lower.