The TSX closed at a fresh all-time high on Tuesday as a wave of strong bank earnings and a rally in financials and gold miners pushed the index higher, even as Canada confirmed retaliatory tariffs on roughly $20 billion of U.S. goods. On Wall Street, chip stocks rebounded ahead of Nvidia's earnings report, due after today's closing bell — the single biggest event on the market calendar this week.
What It Means for You: Bank stocks jumping on strong Q3 earnings is a good sign for anyone holding a Canadian bank-heavy portfolio in a TFSA or RRSP. But today's two headline events — Nvidia's earnings and the U.S. PCE inflation report — could easily reverse the week's calm mood by tomorrow morning, so it's not a day to make big moves based on today's numbers alone.
Canadian Markets
| Index | Close | Change |
| S&P/TSX Composite | 36,957.63 | +243.51 (+0.66%) |
| Canadian Dollar (USD/CAD) | 1.3861 | ~72.15 US cents |
The TSX gained 0.66% to a new record close, with financials, materials and tech leading the way. It was a big day for Canada's biggest banks: Bank of Nova Scotia jumped 7% to $128.99 after posting stronger-than-expected Q3 profit on higher interest income, while BMO added just over 0.6% to $240.69 on strong capital-markets results. National Bank reports Wednesday, with RBC, TD and CIBC rounding out bank earnings week on Thursday. Gold miners also had a strong session as bullion held near record territory, while energy names lagged on falling oil prices.
On the trade front, Canada confirmed retaliatory tariffs on roughly $20 billion (more than 700 product lines) of U.S. goods, effective September 8, and doubled its counter-tariffs on U.S. steel and aluminum to 50% — matching the U.S. rate dollar for dollar, as Prime Minister Mark Carney had pledged. The loonie held steady near a multi-week high around 72 cents US, supported by elevated oil prices and a softer greenback.
U.S. Markets
| Index | Close (Tue) | Change |
| Dow Jones | 53,577.40 | +160.24 (+0.30%) |
| S&P 500 | 7,677.28 | +0.32% |
| Nasdaq Composite | 26,151.30 | +0.66% |
All three major U.S. averages closed higher Tuesday, with the Dow notching its third straight winning session. A rally in semiconductor stocks lifted the Nasdaq as chipmakers clawed back some of Monday's losses ahead of Nvidia's results. The 10-year Treasury yield fell more than 7 basis points to 4.625% after reports that the U.S. Treasury could tap its General Account to help fund bond buybacks, easing some of the yield pressure that has weighed on stocks this month.
Futures were roughly flat to slightly lower early Wednesday (S&P and Dow futures near the flatline, Nasdaq futures off about 0.2%) as traders held back ahead of two major catalysts: this morning's July PCE inflation report — the Fed's preferred inflation gauge — and Nvidia's earnings after today's closing bell. Also on deck: the second estimate of Q2 GDP and July durable goods orders.
Europe & Asia
Europe: Markets opened mostly higher Wednesday — the Stoxx 600 up about 0.1%, France's CAC 40 up 0.3% on a bounce in luxury names, Germany's DAX off slightly (down about 0.1%) as SAP weighed on the index, and London's FTSE 100 roughly flat. Bank stocks gained broadly, while oil majors like BP and Shell fell on lower crude prices.
Asia: Markets were mostly higher overnight. South Korea's Kospi led with a roughly 1% gain on strength in chipmakers SK Hynix and Samsung, Hong Kong's Hang Seng rose about 0.75%, and China's Shanghai Composite added around 0.6%. Japan's Nikkei was mixed.
Commodities
| Commodity | Price | Change |
| Brent Crude | ~$86.38/bbl | -2.5% |
| WTI Crude | ~$80.20/bbl | -2.6% |
| Gold | ~US$4,676-4,700/oz | pulling back slightly |
Oil extended its slide for a third straight session, with Brent and WTI both down more than 2%, as reports of renewed Iran-Oman diplomatic talks and an increasing flow of vessels through alternate routes around the Strait of Hormuz eased some supply-disruption fears. Gold eased modestly off Tuesday's more-than-three-month high near $4,720/oz but remains up nearly 20% from its July lows, as investors continue to weigh a weaker U.S. dollar and Treasury-buyback speculation — the so-called "debasement trade."
What It Means for You: If gas prices at the pump feel a little better this week, falling crude is the reason — though the effect is usually only partial and takes a few days to show up. If you're holding gold in a TFSA or RRSP as an inflation hedge, this is a normal pullback within an unusually strong multi-week run, not a trend reversal on its own.
What to Watch
- Today: July PCE inflation data, Q2 GDP (second estimate), July durable goods orders, and Nvidia's earnings after the closing bell
- Wednesday: National Bank of Canada earnings
- Thursday: RBC, TD and CIBC earnings; Marvell Technology earnings
- Friday: Fed Chair Kevin Warsh's first Jackson Hole speech
- September 2: Bank of Canada rate decision
- September 7: Federal gas tax holiday expires
- September 8: Canada's retaliatory tariffs on U.S. goods take effect
This article is for informational purposes only and does not constitute financial advice. Market figures are as of the time of writing and subject to change. Consult a licensed financial advisor before making investment decisions.
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