August 5, 2026
Global markets roared into record territory Tuesday as easing fears over a Middle East oil shock sent crude prices tumbling and investors piled back into stocks. The Dow closed above 54,000 for the first time ever, the S&P 500 hit its first record high since June, and the TSX bounced back hard from its Civic Holiday closure. Here's everything you need to know before the market opens today.
🇨🇦 TSX: Back With a Bang
Canadian markets reopened Tuesday after Monday's Civic Holiday closure, and investors made up for lost time. The S&P/TSX Composite Index surged 575.45 points, or 1.63%, to close at 35,801.59 — one of its strongest single-day gains of the year — clawing back all of Friday's 0.79% pullback and then some.
| Index | Close | Change |
|---|
| S&P/TSX Composite | 35,801.59 | +575.45 (+1.63%) |
| TSX Venture | 898.89 | +3.66% |
The rally was broad-based, with financials and miners leading the charge:
- Brookfield Asset Management jumped more than 6% after officially completing its acquisition of Oaktree Capital.
- Big banks — RBC, TD, BMO, CIBC and Scotiabank — all gained roughly 1% as falling oil prices eased inflation and rate-hike worries, pulling bond yields lower.
- Gold miners rallied on firmer bullion prices: Agnico Eagle rose over 5%, Barrick added nearly 5%, and Wheaton Precious Metals climbed more than 6%. Teck Resources, First Quantum and Lundin Mining jumped as much as 16%.
- Shopify gained close to 1.5% ahead of its earnings release today, while Constellation Software rose 7.4% and Celestica surged nearly 13%.
- Energy stocks were the lone drag, with Suncor and Canadian Natural Resources down roughly 4% as oil prices tumbled.
🇺🇸 Wall Street: A New Record Above 54,000
U.S. markets went parabolic for a second straight session, with all three major indexes notching gains as investors bet that diplomacy — not military action — will settle the standoff over the Strait of Hormuz.
| Index | Close | Change |
|---|
| Dow Jones | 54,085.88 | +907 (+1.71%) |
| S&P 500 | 7,737 | +1.79% |
| Nasdaq Composite | 26,584.99 | +2.59% |
The Dow's 907-point surge marked back-to-back record closes, and the S&P 500 posted its first record high in two months. Big movers included Palantir, which soared nearly 30% on what its leadership called "otherworldly" growth, and Caterpillar, which jumped over 5% after posting more than $20 billion in quarterly revenue for the first time. Chip and AI-adjacent names (AAOI, Coherent, Lite) also caught a bid. Advanced Micro Devices and SpaceX both reported earnings after the close, with AMD shares slipping in after-hours trading despite solid results.
🌍 Europe & Asia
Europe rode the same wave of optimism, with the pan-European STOXX 600 pushing toward record territory. Germany's DAX rose 0.98% to clear 30,200, while London's FTSE 100 added 0.37%. Strong earnings from HSBC and Bayer helped offset weakness in consumer names.
Asia followed Wall Street sharply higher into Wednesday's session, with tech-heavy markets leading the way. Japan's Nikkei 225 jumped 3.66% to 66,300, its broader Topix gained 2.13%, and South Korea's Kospi surged 3.76% to 6,598 as chipmakers rallied. Hong Kong's Hang Seng and mainland China's Shanghai Composite posted more modest gains.
🛢️ Oil, Gold & the Loonie
| Commodity/Currency | Level |
|---|
| Brent Crude | ~$80/barrel (down sharply from recent highs) |
| WTI Crude | ~$75-76/barrel |
| Gold | ~$4,075-4,130/oz (+~1%) |
| USD/CAD | 1.4072 |
Oil extended its slide after President Trump called off a planned strike on Iran to give diplomacy a chance, with reports that the U.S., Iran and Oman are closing in on an interim deal to reopen the Strait of Hormuz. That's a sharp reversal from the war-premium prices seen earlier this summer, and it's a big reason bond yields and rate-hike bets have both cooled. The loonie held fairly steady near 1.407 against the greenback.
💡 What It Means for You
- Gas prices: With oil down sharply from its Middle East-crisis highs, expect prices at the pump to keep easing over the next week or two.
- RRSP/TFSA holders: If you hold Canadian bank stocks, gold miners, or U.S. tech/AI names, today's rally was a good one for your portfolio. Keep an eye on Shopify's earnings today — it's a heavily held name in many Canadian portfolios.
- Mortgage rates: Falling oil prices ease inflation pressure, which is nudging bond yields lower — a modestly positive sign for fixed mortgage rates heading toward the Bank of Canada's Sept. 2 decision.
- Cross-border shoppers/travellers: The loonie's holding fairly steady, so no major swing in your U.S. dollar purchasing power today.
👀 What to Watch
- Today: Shopify reports Q2 earnings — a widely held name for Canadian TFSA and RRSP investors.
- This week: Markets will watch closely for any formal announcement on a U.S.-Iran interim deal to reopen the Strait of Hormuz.
- Friday: Fresh U.S. labour market data is due, which will shape expectations for the Fed's next move.
- Sept. 2: The Bank of Canada's next rate decision — today's oil-driven cooling in inflation expectations makes a hold increasingly likely.
This article is for informational purposes only and does not constitute financial advice. Market data reflects closing prices as of August 4, 2026, and early trading on August 5, 2026. Always consult a licensed financial advisor before making investment decisions.
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