Markets Update — Friday, June 26, 2026: Global Tech Sell-Off Rattles Markets as TSX Holds Firm
Friday, June 26, 2026 — Reporting on confirmed June 25 closing data. Asian and European figures reflect Friday session activity.
🇨🇦 Canada — TSX
The S&P/TSX Composite Index closed Thursday at 34,850, up 0.3% on the day — a relatively resilient showing while Wall Street struggled with a tech-driven selloff. Gains in the financial and mining sectors carried the index. The big Canadian banks were a bright spot: TD Bank added 0.9%, Royal Bank gained 0.4%, and BMO rose 0.9%. On the mining side, Agnico Eagle gained 1.7% as gold prices held near the $4,000 level.
Technology names were the drag. Shopify fell 2.6%, Constellation Software lost 3.6%, and Celestica shed 0.7%, tracking the broader global selloff in tech stocks. Still, with Canadian tech making up a far smaller portion of the TSX than it does on U.S. indices, the damage was contained.
Investors also parsed Thursday's Bank of Canada Summary of Deliberations, which confirmed policymakers are keeping monetary policy flexible. The BoC held its key rate at 2.25% at its last meeting and the deliberations showed the governing council sees risks on both sides — potential new U.S. trade restrictions and shifting energy prices mean a rate hike or a cut are both on the table depending on how conditions evolve.
What it means for you: The TSX is once again doing what it does best — acting as a buffer in a tech-driven storm. If you hold broad Canadian index funds, the bank and commodity weighting is providing real insulation. With the BoC's rate path still uncertain on both sides, variable-rate mortgage holders shouldn't expect relief yet, but a hike isn't a certainty either.
💵 Canadian Dollar
The loonie is under pressure. USD/CAD is trading near 1.4233 this morning, close to a one-year low. That puts the Canadian dollar at roughly 70.3 U.S. cents. The pair briefly touched 1.42 earlier this week — its weakest point since April 2025.
The key driver is diverging central bank expectations. The Bank of Canada is holding at 2.25% with a neutral-to-dovish tilt, while the U.S. Federal Reserve is increasingly expected to hike rates — markets are pricing roughly an 80% chance of a Fed rate hike in December, with some probability of a September move. That interest rate gap is pulling money toward the U.S. dollar and away from the loonie.
What it means for you: A weaker loonie means cross-border purchases, U.S. streaming subscriptions, online orders from American retailers, and even summer road trips across the border all cost more in Canadian dollars. On the upside, Canadians holding U.S. equities or USD-denominated accounts are benefiting from a currency tailwind.
🇺🇸 United States — Wall Street
U.S. markets closed Thursday in a split decision, with the tech-heavy Nasdaq logging its fourth consecutive day of losses even as strong earnings from Micron Technology momentarily lifted chipmaker stocks.
Thursday June 25 close:
- S&P 500: 7,357.49 (−0.01%)
- Nasdaq Composite: 25,358.60 (−0.46%) — fourth straight losing session
- Dow Jones: 51,920.62 (+0.14%) — briefly touched an intraday all-time high of 52,655.66
Micron Technology was the session's standout, surging over 15% after blowout third-quarter earnings. Micron reported adjusted earnings of $25.11 per share versus the $20.78 analysts expected, and revenue quadrupled year-over-year to $41.5 billion. The outlook for the August quarter was equally strong, reflecting robust AI-driven demand for memory chips. Qualcomm also rallied, nearly doubling its non-handset revenue projection for 2029 to $40 billion, while Sandisk jumped 22% and Applied Materials surged 13% in sympathy.
But the megacap names told the opposite story. Apple fell 6.1% after announcing price increases on MacBooks and iPads, blaming higher memory component costs. Microsoft dropped 3.5% after raising Xbox console prices by $100–$150. Amazon lost 3.1%, Nvidia slipped 1.6%, and Meta fell 2.7%. The Dow held up because its gains came from industrials and healthcare — Caterpillar surged 6.1% and UnitedHealth rose 2.4%, keeping the blue-chip index in the green while tech sank.
On the economic data front, Thursday also brought the May PCE inflation report — the Federal Reserve's preferred inflation gauge. Headline PCE came in at 4.1% year-over-year, the highest in three years, while core PCE (excluding food and energy) rose to 3.4% from 3.3% in April. Both figures met expectations, which gave markets brief relief, but the reading did nothing to reduce pressure on the Fed. Chicago Fed President Austan Goolsbee said after markets closed that core inflation is "too high" and "trending the wrong way."
This morning: U.S. futures are under further pressure ahead of Friday's open. Nasdaq-100 futures are down about 1.2%, S&P 500 futures are off 0.5%, and Dow futures are slightly lower. The University of Michigan's final June consumer sentiment reading is due today.
What it means for you: If you hold U.S. tech ETFs or Magnificent 7 names, this has been a difficult week. The Nasdaq is now down roughly 5.5% from its early June peak. The rotation underway — money flowing from megacap tech into industrials, healthcare, and financials — may continue heading into Q3, especially if the Fed signals it's ready to move on rates.
🌏 Asia-Pacific
Asian markets bore the brunt of Friday's global tech rout, erasing most of Thursday's Micron-fueled gains in a single session.
Japan's Nikkei 225 fell 4.15% to close at 69,360.88 — almost exactly reversing Thursday's 4.6% surge. SoftBank Group plunged more than 10.8%, Advantest dropped 6.2%, and Taiyo Yuden shed 8.3%. Compounding the pressure, Tokyo's latest core inflation data accelerated for the first time in eight months, reinforcing expectations that the Bank of Japan will keep raising interest rates — a headwind for growth and tech stocks.
South Korea's Kospi fell 5.8% to 8,411.21 — severe enough that the exchange triggered a circuit breaker, halting trading temporarily. Samsung and SK Hynix each dropped 7–9% despite the bullish AI memory demand picture painted by Micron. The selling was characterized as profit-taking after a strong run rather than a change in AI fundamentals.
Australia's S&P/ASX 200 was the lone bright spot, edging up 0.18% to 8,764.20, supported by commodity-related stocks. Hong Kong's Hang Seng fell 1.76% and mainland China's CSI 300 dropped 3% to 4,869.64.
What it means for you: If you hold global ETFs with significant Asia-Pacific exposure like XEF or VEE, this week is a reminder of how quickly AI-driven rallies can reverse. Analysts are framing the sell-off as a valuation recalibration — investors are becoming more selective about which companies can actually justify current price levels — rather than a signal that the AI theme is over.
🇪🇺 Europe
European markets opened Friday firmly in negative territory, tracking the global tech mood. Germany's DAX shed about 0.8% to around 24,793, France's CAC 40 fell roughly 0.4% to 8,398, and Britain's FTSE 100 dropped about 0.4% to 10,490. The pan-European Stoxx 600 is down approximately 1% across the board, with tech and semiconductor-exposed names leading losses.
European markets are also navigating domestic political uncertainty. The U.K. remains in transition following Prime Minister Keir Starmer's surprise resignation earlier this week. Sterling has stabilized but gilt yields remain a watch item for anyone with U.K. equity exposure.
🛢️ Oil
Crude oil extended its decline Friday, with WTI trading near $69.41 per barrel and Brent near $72.51 — both down roughly 3.5% on the day. These levels are close to where oil sat before the U.S.–Iran conflict sent prices surging earlier this year. Wednesday's confirmed Brent close was $73.74 and WTI settled at $70.34.
The Strait of Hormuz is open for business again. Tanker traffic has resumed through the critical waterway as U.S.–Iran peace negotiations continue, steadily unwinding the supply-risk premium that had driven prices higher since the conflict began. A complication emerged Friday however: a U.S. official confirmed Iran was behind an attack on a Singapore-flagged cargo ship near Oman's coast. Markets are watching but have not materially reversed course on the news.
What it means for you: Lower oil prices translate to lower gasoline prices at Canadian pumps. With Canada Day long weekend approaching, drivers should see some relief compared to spring highs. The drop in energy costs is also one of the few pieces of good news on the inflation front — it's helping to ease both headline CPI in Canada and PCE in the U.S.
🥇 Gold
Gold rebounded modestly Thursday, trading above $4,000 per ounce after the in-line PCE inflation data pushed the U.S. dollar and Treasury yields slightly lower. The 10-year Treasury yield slipped to 4.394% at Thursday's U.S. close — its lowest since mid-May — providing temporary relief. However, spot gold is back under pressure Friday near $3,996 per ounce, on track for its fourth consecutive week of losses and roughly 20% below its January record high.
The headwinds are structural: a stronger U.S. dollar, rising rate-hike expectations, and falling oil prices reducing the inflation-hedge premium. Markets are pricing roughly 80% odds of a Fed rate hike by December.
What it means for you: For Canadian gold investors, the weaker loonie softens the blow. At USD/CAD ~1.42, gold near $4,000 USD translates to roughly $5,680 CAD per ounce. Canadian gold miners on the TSX — Agnico Eagle, Barrick, Franco-Nevada — have held up better than the spot price in USD terms. If you have gold exposure through Canadian-listed ETFs or miners, the currency effect is providing partial insulation.
📅 Looking Ahead
- Canada Day — Wednesday, July 1: TSX and Canadian markets are closed. Also the CUSMA review deadline — a significant date for Canada–U.S. trade that markets will be watching closely.
- U.S. Jobs Report (NFP) — Thursday, July 2: Released a day early due to the July 4 holiday. Nonfarm payrolls will be the next big test for Fed rate expectations.
- U.S. Consumer Confidence — Tuesday, June 30: Conference Board's June reading. University of Michigan sentiment recently recovered from record lows — this will offer a cross-check.
- Nike (NKE) and Constellation Brands (STZ) earnings — Tuesday, June 30: Among the last major consumer-facing earnings of the Q2 season.
This update is published Friday, June 26, 2026 and reports on confirmed June 25, 2026 closing data. Asian and European figures reflect Friday session activity. Intraday commodity and currency figures are noted where applicable. Data sourced from Trading Economics, Yahoo Finance, CNBC, Baystreet.ca, and U.S. Bureau of Economic Analysis. This article is for informational purposes only and does not constitute financial advice. Always consult a qualified financial advisor before making investment decisions.
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