Markets Today: TSX Extends Gains as Oil Tops $80, Nikkei Slides on Chip Selloff — July 16, 2026

 

Thursday, July 16, 2026

A calm reaction to the Bank of Canada's rate hold gave way to a jumpier morning overseas, as surging oil prices and a semiconductor selloff in Tokyo set the tone for markets heading into Thursday's session.

The Quick Take

• TSX closed Wednesday up 95.66 points at 35,416.20, shrugging off a "muted" reaction to the BoC's sixth straight rate hold at 2.25%
• Wall Street's three major indexes all finished higher Wednesday; futures are mixed to slightly lower Thursday morning
• Oil is above $80 US a barrel, up more than 11% over four sessions, as U.S. strikes on Iran continue near the Strait of Hormuz
• Japan's Nikkei fell 2.6% overnight on a chip-stock selloff; European markets are mixed this morning
• The loonie sits at 71.18 cents US, a touch firmer than Tuesday

🇨🇦 Canadian Markets

The S&P/TSX Composite climbed 95.66 points Wednesday to close at 35,416.20, with strength in financials offsetting weakness in basic materials and technology names. The move came after the Bank of Canada held its benchmark rate at 2.25% for a sixth consecutive decision — a call that was widely expected by economists and, according to Victoria-based portfolio manager Kevin Burkett, drew a largely "muted" market reaction.

BoC Governor Tiff Macklem said the current rate sits at the right level to guide inflation back to the 2% target while supporting the recovery, though the bank's governing council remains ready to move if conditions change. Burkett noted the central bank has limited room to cut given the risk to the currency, and that stronger-than-feared inflation data has actually helped stocks by easing pressure on business margins.

Index	Close	Change
S&P/TSX Composite	35,416.20	+95.66 (+0.27%)

🇺🇸 U.S. Markets

All three major U.S. indexes advanced Wednesday as traders digested softer inflation data. The S&P 500 finished up 0.38% at 7,572.40, the Nasdaq Composite gained 0.62% to 26,269.23, and the Dow Jones Industrial Average added 150.37 points (0.29%) to close at 52,658.64. Apple hit a fresh all-time high on a 4% gain, while Amazon, Alphabet and Microsoft each rose roughly 3%. It wasn't all smooth sailing in tech: Micron dropped 8%, and chipmakers Lam Research and AMD also fell as memory-chip stocks came under pressure.

Thursday's setup is choppier. S&P 500 futures were down about 0.1% and Nasdaq 100 futures off roughly 0.5% in early trading, with chip stocks again under strain — the VanEck Semiconductor ETF slid over 2% premarket. Dow futures bucked the trend, up about 145 points on a strong earnings beat from UnitedHealth. Retail sales and jobless claims data land at 8:30 a.m. ET, with Netflix reporting earnings after the close.

Index	Close (Jul 15)	Change
Dow Jones Industrial Average	52,658.64	+150.37 (+0.29%)
S&P 500	7,572.40	+28.81 (+0.38%)
Nasdaq Composite	26,269.23	+162.22 (+0.62%)

🌍 European & Asian Markets

Asian trading was rough overnight. Japan's Nikkei 225 dropped 2.6% to below 67,000, snapping a two-day winning streak, as semiconductor names sold off hard on renewed doubts about the AI trade — Kioxia Holdings fell 8.7%, SoftBank Group 5.9%, and Tokyo Electron 5.2%. The broader Topix slid 0.8%. It was a sharp reversal from Wednesday's 1.24% Nikkei advance. Hong Kong's Hang Seng bucked the regional weakness, trading up roughly 1.6% as investors favoured selective tech and property names.

Europe opened Thursday on a mixed note as investors continue weighing Middle East developments against corporate earnings. Germany's DAX was down about 0.6%, while France's CAC 40 and the UK's FTSE 100 traded closer to flat. Attention across the region remains fixed on oil supply risk and this week's central bank commentary.

Index	Change
Nikkei 225 (Japan)	-2.6%
Hang Seng (Hong Kong)	~+1.6%
DAX (Germany)	~-0.6%
CAC 40 (France)	roughly flat
FTSE 100 (UK)	roughly flat

🛢️ Commodities

Oil is the story of the week. WTI crude was trading above $80 US a barrel Thursday morning, extending a rally that has added more than 11% over four sessions, while Brent held just under $85. U.S. forces carried out fresh airstrikes on Iranian missile facilities near the Strait of Hormuz on Wednesday, and reports suggest Washington may be weighing broader action, including a possible move on Iran's Kharg Island export terminal. Roughly a fifth of global oil supply normally moves through the strait, and ship-tracking data shows traffic has slumped sharply since fighting resumed. On Wednesday's close, WTI settled at $79.60 US (+26 cents) and Brent at $84.95 US (+22 cents).

Gold slipped toward $4,036 US an ounce Thursday, down about 0.6%, as the stronger oil-driven inflation risk offset support from softer U.S. producer price data released Wednesday. Gold remains up close to 21% over the past year despite the recent pullback from its January record above $5,600.

💵 Canadian Dollar

The loonie traded at 71.18 cents US on Wednesday, up slightly from 71.09 cents US on Tuesday. With the Bank of Canada on hold and the Fed's next move still uncertain, the currency has been trading in a narrow band, with oil's climb providing modest support for the commodity-linked Canadian dollar even as rate-cut room stays limited.

What It Means for You

• At the pumps: With WTI above $80 US, expect gas prices to creep higher across Canada in the coming days if the Strait of Hormuz standoff persists.
• On your mortgage: The BoC's sixth straight hold means variable rates stay put for now — but oil-driven inflation risk could complicate the path to future cuts.
• On your portfolio: If you hold energy or bank-heavy Canadian funds, Wednesday's TSX gain likely worked in your favour; tech-heavy holdings may feel Thursday's chip-sector jitters.
• Cross-border shopping/travel: A firmer loonie at 71.18 cents US is a small win if you're planning U.S. purchases or a trip south of the border.

👀 What to Watch Today

• U.S. retail sales and jobless claims data at 8:30 a.m. ET — a key read on whether the economy is cooling enough to keep the Fed on hold
• Continued developments around the Strait of Hormuz and their impact on oil supply
• Netflix earnings after Thursday's close, alongside continued bank and industrial earnings season
• Any follow-through selling in semiconductor names after Japan's overnight chip rout

Market data as of Thursday morning, July 16, 2026. Figures reflect the most recent available closes and pre-market data at time of writing and may shift by market open. This article is for informational purposes only and is not investment advice.