Market news
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
U.S. and Canadian markets closed mixed this week as inflation and trade tensions weighed. Investors watch Fed signals and NVIDIA results for direction.
Background
This week, U.S. and Canadian stock markets experienced volatility due to hotter-than-expected inflation data and escalating U.S.-Canada trade tensions. The PCE price index, the Fed's preferred inflation gauge, rose to 3.7% annually, above expectations, raising concerns about potential rate hikes. Meanwhile, the U.S. imposed new tariffs on Canadian goods after negotiations broke down, prompting retaliation threats. Investors are now focused on the Federal Reserve's next policy meeting and NVIDIA's earnings as potential market catalysts.
How it unfolded
- Aug 25, 2026Markets closed lower as tech stocks fell, but bond yields eased on reports of potential bond buybacks. Trump announced 50% tariffs on Canadian auto and steel imports starting Jan 1, 2027.
- Aug 26, 2026Tech stocks led gains, with Nasdaq jumping 0.7% to 26,151.30. NVIDIA rose 2.2% ahead of earnings.
- Aug 27, 2026Markets closed modestly lower as oil prices fell and PCE inflation came in hotter than expected at 3.7% annually. Dow snapped three-day winning streak.
- Aug 28, 2026S&P 500 jumped 0.7% to 7,730.99, led by tech stocks after NVIDIA's strong results and Salesforce's surge. However, trade tensions escalated with new U.S. tariffs on Canadian goods.
Who’s saying what
- Analysts
- Hotter inflation data increases the likelihood of a rate hike in September, with markets pricing in a 38.1% chance.
- Bulls
- NVIDIA's strong results reassure investors that the AI boom is sustainable, boosting tech stocks.
- Bears
- Trade tensions and inflation pressures could keep yields elevated and weigh on market sentiment.
Still unverified
The potential use of the Treasury General Account for bond buybacks is based on a report and not confirmed.