Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Canada’s main stock index ended a four-day record run on Friday, slipping 29.02 points (−0.08%) to close at 36,730.27, according to Canadian Press market data. After closing at new highs on Monday, Tuesday, Wednesday, and Thursday, the S&P/TSX Composite finally paused on weaker-than-expected US retail sales data and profit-taking after a strong week.
“The market is in a bit of a profit-taking mode after a very strong run,” said Lesley Marks, Chief Investment Officer of Equities at Mackenzie Investments.
Friday’s modest decline capped what was otherwise a strong week for Canadian equities. The TSX notched four consecutive record closes from Monday through Thursday, with Wednesday’s session gaining 0.51% and Thursday delivering a fourth straight record close on a 0.26% gain. Breadth Thursday showed solid participation, with 528 advancers against 451 decliners and 70 stocks unchanged.
Inflation Data Eased Rate-Hike Concerns
A pair of softer US inflation reports midweek helped fuel the record streak. Wednesday’s US July CPI data showed headline inflation rising just 0.1% month-over-month and 3.4% year-over-year, down from 3.5% in June. Core inflation slowed to 2.5% year-over-year, the slowest pace since 2021, meeting consensus expectations.
Thursday followed with an even milder US July PPI report: headline producer prices were flat month-over-month versus the +0.2% expected, and the year-over-year gain of 4.7% came in below the 4.9% forecast. Goods prices fell 0.7%, led by a 3.1% drop in energy and a 5.7% decline in gasoline.
These reports eased concerns about further Federal Reserve rate hikes, the worry that has dominated market sentiment in recent months. None of this amounts to a policy pivot, but the data reduced the near-term risk of additional tightening.
Energy Rallied, Then Pulled Back
Energy stocks had a volatile week. Oil rallied past US$89 per barrel for a fifth straight day through Tuesday, driving strong early-week performance. Brent crude snapped that run Wednesday with a −1.56% pullback, and crude fell another 2.40% Thursday. Friday’s session saw September crude settle at US$82.40 per barrel, up US$1.15 on the day, according to Canadian Press market data. The TSX Capped Energy index rose 0.45% Friday.
Notable Movers
Thursday’s standout gainers included Bird Construction (+11.44%), TerraVest (+8.86%), Shopify (+5.33%), Constellation Software (+2.8%), and Celestica (+2.6%). On the downside, Boyd Group Services tumbled 12.56%, Pan American Silver fell 9.78% after reporting second-quarter earnings per share below expectations, and CAE dropped 5.16%.
Wednesday saw Air Canada shares surge 12.25% after the airline restored its financial guidance, while Celestica jumped 9.20% and EIF advanced 5.66%. Constellation Software declined 4.51% despite reporting higher second-quarter net income. CCL Industries reported Thursday that second-quarter sales rose 9.1% and adjusted earnings per share climbed 10.7%.
What It Means for Canadian Investors
The TSX’s record-setting week reflects broader confidence that inflation is cooling without forcing central banks into aggressive tightening. For Canadian equity investors, that’s a supportive environment—especially for rate-sensitive sectors like financials. The Capped Financials index edged up 0.04% Friday.
With Monday’s Canada July CPI data ahead and big-bank earnings scheduled for the week of August 25–28, we’re entering a critical stretch for Canadian markets. Profit-taking after a strong run is normal, and Friday’s modest pullback doesn’t change the underlying trend.
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Looking Ahead
All eyes turn to Monday morning, when Statistics Canada releases July CPI data at 8:30am ET. June’s headline inflation was 2.8% year-over-year, down from 3.2% in May. Our full CPI preview breaks down what to watch.
The Bank of Canada held its policy rate at 2.25% on July 15, with the next decision scheduled for September 2. Canadian big-bank third-quarter earnings are scheduled for the week of August 25–28, with BMO and Scotiabank reporting Tuesday August 25, National Bank on Wednesday August 26, and Royal Bank, TD, and CIBC on Thursday August 27.
Data as of August 14, 2026 market close.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Data as of August 14, 2026.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
