Current Economics
Today's Market Brief — August 21, 2026
What's changed since our last update on August 19 — Bank of Canada policy is unchanged and not repeated below.
Published 2026-08-21 · Educational information only
Markets Overview
This week's bond-market relief proved short-lived. Wednesday's Treasury-driven yield rally reversed hard on Thursday, sending the Dow down about 700 points and yields climbing back toward their highs, before markets stabilized today. The Canada-U.S. tariff truce also remains only a temporary reprieve, with the current pause due to expire this weekend.
Canadian Equities (TSX)
The S&P/TSX Composite slipped 36.37 points (-0.1%) Thursday to 36,365.42 as weak financials offset gains in energy and base metals, then traded modestly higher today, near 36,426 (+0.16%).
U.S. Equities (S&P 500, Dow, Nasdaq)
U.S. stocks tumbled Thursday as Wednesday's bond-market relief evaporated and chip stocks sold off, with the Dow falling roughly 700 points. Markets stabilized today: the S&P 500 rose 0.31% to 7,715.47, the Dow added 0.21% to 53,453.98, and the Nasdaq gained 0.20% to 26,342.08, led by Tesla (+3.18%), Amazon (+1.9%), and Apple (+1.67%), while JPMorgan (-1.94%) lagged.
Bond Yields & Interest Rates
The U.S. 10-year Treasury yield climbed back to about 4.70% — within 5 basis points of this cycle's 20-month high — as Wednesday's Treasury-buyback-driven rally faded and the VIX volatility index spiked more than 7% on Thursday.
Canadian Dollar (CAD/USD)
The loonie was little changed this week, holding in its recent range as markets weighed the tariff truce against broader yield volatility.
Commodities (Oil & Gold)
Gold extended its rally to about US$4,530 an ounce, its highest since June, as this week's yield and equity swings kept safe-haven demand elevated. Oil held above US$90 a barrel, extending its recent advance amid ongoing supply concerns.
Inflation & Economic Data
Statistics Canada's June retail trade report is due today; an advance estimate pointed to a modest 0.4% month-over-month increase, following May's stronger 1.0% gain. No new Canadian CPI data is scheduled before the next release; the Bank of Canada's next decision remains September 2. The Federal Reserve's next decision is September 15-16.
Global Markets Snapshot
The bigger story into the weekend is the Canada-U.S. tariff truce: Wednesday's three-day pause on the threatened 50% U.S. tariff is due to expire Saturday, and Prime Minister Carney has cautioned that "important work" remains before a final deal is signed — leaving room for another sharp market swing depending on the outcome.
What This Means
Day-to-day market moves are normal and are not a reason to change a long-term plan on their own. If today's news raises questions about your own portfolio, protection, or goals, that is a good reason to book a 30-minute session rather than react alone.
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