TSX Jumps After BoC Holds Rates, Oil Slips From 6-Week High (Sept. 3)

 

Thursday, September 3, 2026

Canadian stocks rallied Wednesday after the Bank of Canada held its key rate steady, banks and gold miners led the charge, and Wall Street snapped a three-day losing streak. Overnight, oil eased back from a six-week high after President Trump suggested the latest round of U.S. strikes on Iran "won't continue much longer" — a comment markets took as a small sign the Middle East conflict may not escalate further, at least for now. Here's what moved markets and what it means for your wallet.

🇨🇦 Toronto Stock Exchange

Index	Close	Change
S&P/TSX Composite	36,092	+266 (+0.7%)

The TSX climbed roughly 0.7% to close at 36,092 after the Bank of Canada held its overnight rate at 2.25% for an eighth straight meeting — exactly what markets expected. The central bank said the economic recovery is broadening, but flagged that upside risks to inflation have increased and that new tariffs have made the growth outlook murkier. It left the door open to moving in either direction depending on incoming data.

The Big Five banks led gains on the news, with CIBC (+2.4%), BMO (+2.2%) and Scotiabank (+1.9%) out front, while RBC and TD also advanced. Gold miners rebounded alongside bullion prices, with WPM up 3.6%, Barrick up 2%, and Agnico Eagle up 1.2%. Shopify added about 1%, tracking a broader U.S. tech rebound.

🇺🇸 Wall Street

Index	Close	Change
Dow Jones	53,061.95	+295.07 (+0.56%)
S&P 500	7,666.60	+0.46%
Nasdaq Composite	26,217.83	+0.45%

All three major U.S. indexes snapped a three-day losing streak as Treasury yields took a breather from their recent surge. The 10-year yield had touched 4.818% on Wednesday — the highest since November 2023 — before easing slightly. Nvidia and Johnson & Johnson led the Dow's advance, while Dell jumped after raising its annual revenue forecast on strong AI server demand.

A weaker-than-expected ADP report showed U.S. private employers added just 38,000 jobs in August — the smallest gain since January — pointing to a cooling labour market ahead of Friday's official jobs report, where economists expect a modest ~45,000 new positions.

🌍 Europe & Asia

Index	Change
Euro STOXX 50 (Wed. close)	-0.1%
STOXX Europe 600 (Wed. close)	-0.2%
Nikkei 225 (Thu. AM)	+0.2% (~64,456)
Kospi (Thu. AM)	+1.4% (~6,657)
Hang Seng (Thu. AM)	+0.1%
Shanghai Composite (Thu. AM)	+0.4%
ASX 200 (Thu. AM)	+0.5%

European indexes closed little changed Wednesday, sitting near a one-month low as elevated borrowing costs and Middle East-driven energy prices weighed on utilities and consumer stocks. Asian markets turned higher Thursday morning as oil retreated from its weekly spike — Japan's Nikkei rose on gains in SoftBank and Tokyo Electron, while South Korea's Kospi jumped over 1% on strength in Samsung Electronics and SK Hynix.

🛢️ Commodities & Currency

Asset	Level
Brent Crude	~US$94/bbl, down from a ~$97 peak
WTI Crude	~US$90–91/bbl
Gold	~US$4,360/oz, up from a 1-month low
Canadian Dollar	~1.385 USD/CAD (~72.2¢ US)

Oil pulled back from a six-week high after Trump signalled the latest wave of U.S. strikes on Iran wouldn't drag on indefinitely, even as fighting near the Strait of Hormuz continues to disrupt shipping. U.S. crude inventories fell 4.5 million barrels last week — their first drop since late July — which had helped push prices higher earlier in the week. Gold recovered some ground after a sharp selloff took it to a three-week low, as the U.S. dollar and Treasury yields cooled off. The loonie strengthened on the BoC's inflation-risk language, which markets read as reducing the odds of a near-term rate cut.

💡 What It Means for You

With the BoC holding at 2.25% and flagging inflation risk rather than growth concerns, expect variable mortgage rates to stay put for now — but don't count on the October cut some banks had penciled in. If you're renewing a mortgage this fall, it may be worth locking in sooner rather than betting on a rate drop. Meanwhile, a stronger loonie is a small win if you're planning U.S. travel or online shopping in USD, though pump prices remain elevated with oil still near $90+ a barrel.

📅 What to Watch

• Friday, Sept. 5: U.S. August nonfarm payrolls report — a soft print could reinforce Fed rate-cut bets.
• Monday, Sept. 7: The federal gas tax holiday expires — just 4 days away.
• Tuesday, Sept. 8: Canada's retaliatory tariffs on six U.S. sectors are set to take effect — 5 days out.
• Ongoing: The Strait of Hormuz conflict remains the wildcard for oil prices and inflation expectations heading into fall.

Market data as of market close Wednesday, September 2, 2026, and pre-market Thursday, September 3, 2026 (Asia/Europe sessions), sourced from Trading Economics, Yahoo Finance, CNBC and Reuters. Figures are subject to revision.