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 leading the index back above 35,400. Thursday reversed that gain as gold prices dropped and dragged mining stocks lower—Agnico Eagle, Barrick, and Wheaton Precious Metals were among the hardest hit. Friday's global chip-driven selloff pulled the index down again, though losses were milder than in the US and Asia since energy stocks (Tourmaline Oil and others) caught a bid from surging crude prices, offsetting some of the damage. Net result: the TSX ended the week only marginally lower, in sharp contrast to the sharper declines on Wall Street and in Asia.

🇺🇸 United States

Index	Friday Close	Weekly
S&P 500	7,457.69	-1.6%
Dow Jones Industrial Average	52,146.42	-0.9%
Nasdaq Composite	25,520.24	-2.9%
CBOE Volatility Index (VIX)	18.77	+12.2% (Fri)

All three major US benchmarks posted weekly losses, with the Nasdaq hit hardest as a broad semiconductor sell-off deepened. The PHLX Semiconductor Index tipped into a bear market Friday after a Chinese AI lab unveiled a model that investors saw as narrowing the gap with top US offerings, reviving doubts about how much hyperscalers still need to spend on AI infrastructure. Micron, Lam Research, and AMD were among the hardest-hit chip names. The VIX jumped double digits as traders priced in more turbulence heading into the weekend.

🌍 Europe

Index	Friday Close	Friday Move
FTSE 100 (UK)	10,600	+0.27%
DAX (Germany)	24,831	-0.34%
CAC 40 (France)	8,339	-0.47%
STOXX Europe 600	—	+0.2%

European markets held up better than Wall Street, with the FTSE 100’s light exposure to tech helping it outperform. Earnings news offered some offsetting support: chip-equipment maker ASML jumped on a strong outlook, while a wave of M&A activity—including Uber’s roughly €13-billion bid for Delivery Hero and ABB’s purchase of Rotork—kept deal-makers busy. Still, the same semiconductor jitters weighing on the US reached Europe, with chipmaker Infineon down nearly 4%.

🌏 Asia-Pacific

Index	Friday Move
Nikkei 225 (Japan)	-4.7% to -5.2%
Hang Seng (Hong Kong)	-1.0% to -2.0%
Shanghai Composite	-1.6% to -3.0%
Taiwan Weighted Index	-5.7%

Asia bore the brunt of the AI/semiconductor unwind on Friday. Japan’s Nikkei suffered its sharpest one-day drop in months as chip-equipment names like Tokyo Electron and Advantest tumbled double digits, and SoftBank Group—a major AI investor—fell more than 10%. Taiwan’s benchmark, heavily weighted toward chipmakers, was hit even harder despite TSMC posting record earnings and a stronger 2026 outlook, underscoring how skittish investors have become about AI-related valuations regardless of the underlying fundamentals.

🛢️ Commodities & Currency

Asset	Level	Friday Move
WTI Crude Oil	US$82.49/bbl	+4.5%
Brent Crude	US$84.96/bbl	~+1%
Gold	US$4,018.80/oz	+0.7%
USD/CAD	1.4022	roughly flat

Oil was the week’s big mover. Renewed US-Iran strikes disrupted flows through the Strait of Hormuz, and a collapsed truce sent WTI crude surging more than 4% on Friday alone. That pushed up inflation worries just as central banks were hoping price pressures would keep cooling. Gold whipsawed through the week—dipping on rate-hold expectations, then bouncing back Friday as investors sought safety amid the geopolitical flare-up. The loonie held close to 71½ cents US, still near its strongest level in about a month after the Bank of Canada’s hold.

🏦 Bank of Canada: Held at 2.25%

The Bank of Canada kept its policy rate unchanged at 2.25% on July 15, as widely expected, striking a relatively hawkish tone. It flagged stronger medium-term growth but said inflation will likely stay a bit hotter than previously forecast through 2026 before easing gradually. Policymakers also called out ongoing risks from the Middle East conflict and US trade policy—both reasons rates could stay parked at this level for a while yet.

💡 What It Means for You

• Fixed mortgage renewals: with the BoC on hold and hawkish, don’t bank on near-term relief—shop your renewal rate now rather than waiting for a cut.
• Gas prices: the jump in crude will likely show up at the pump within days if the Middle East conflict doesn’t cool off—fill up sooner rather than later if you can.
• RRSP/TFSA investors: if your portfolio leans tech-heavy, this week is a reminder of how concentrated the AI trade has become—a good moment to check your sector weighting.
• Travelling to the US: the loonie near 71½ cents US is a modest improvement from June’s lows, but still makes cross-border shopping and travel costly.

📅 What to Watch Next Week

• Developments in the US-Iran conflict and their impact on oil supply through the Strait of Hormuz
• Whether the semiconductor sell-off stabilizes or spreads further into broader tech
• Canadian and US corporate earnings season continuing in full swing
• Statistics Canada data releases and any fresh signals on inflation or employment

This Weekly Market Snapshot is for informational purposes only and does not constitute investment advice. Market data reflects closing levels as of Friday, July 17, 2026 (TSX Friday close is a close-based estimate pending final settlement data), and is sourced from The Canadian Press/BNN Bloomberg, Investing.com, Bloomberg, CNBC, Saxo Bank, and Yahoo Finance.