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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The S&P/TSX Composite ended the week down despite a late-week rally, as investors digested mixed retail sales data and positioned ahead of Big Six bank earnings.
The TSX week review August 2026 shows the benchmark index closed Friday at 36,620.23, down 110.04 points or 0.30% from the prior week’s close of 36,730.27. Friday’s 254.81-point gain (+0.70%) offset some losses from mid-week selling that pushed the index to a two-week low on Thursday. Data as of August 21, 2026 close.
Weekly Summary
The index finished Wednesday at 36,401.79, a small gain of 0.09% on the day even as Canadian bank stocks dropped ahead of third-quarter earnings. It then slipped to 36,365.42 on Thursday, a two-week low, before Friday’s recovery.
Last week’s record streak ended on August 14 at 36,730.27, setting the baseline for this week’s modest decline.
Friday’s Rebound Drivers
Banks recovered from a two-day selloff on Friday, with BMO gaining 0.6% and Scotiabank advancing 1.0%. The financials sector stabilized ahead of the week of August 25, when Canadian bank stocks begin reporting third-quarter results.
Gold miners rallied as metal prices firmed. Wheaton Precious Metals climbed 4.9%, Barrick Mining advanced 2.9%, and Agnico Eagle gained 2.3%. December gold reached US$4,680.60 per ounce, up US$109.20 on the session. Gold prices held onto their gains after the US signaled it would increase Treasury note and bond buybacks in the secondary market, according to Trading Economics.
Retail stocks lagged the broader market, with Loblaw declining 0.7% and Dollarama falling 0.5%. October crude oil rose US$0.23 to US$87.06. The Canadian dollar strengthened to 72.67 cents US from 72.54 cents the previous day.
Mid-Week Bank Selloff
Banks faced selling pressure Wednesday and Thursday ahead of quarterly earnings. Royal Bank fell 3.1% on Wednesday alone, with the other major lenders also lower. The sector stabilized Friday but remained below last week’s levels.
Market expectations suggest the Bank of Canada may keep interest rates unchanged at its September 2 decision, based on softer consumer spending data, according to Trading Economics.
June Retail Sales Beat Estimates
Statistics Canada reported June retail sales rose 0.6% to $74.3 billion, exceeding the advance estimate of 0.4% released July 23. Core retail sales, which exclude gasoline stations and motor vehicle dealers, climbed 1.2%, led by general merchandise retailers at 2.7%.
Clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers posted the strongest gain at 3.1%. Gasoline stations and fuel vendors recorded the largest decline at 4.1%. Sales rose in seven of nine subsectors. In volume terms, retail sales increased 1.5% in June.
However, Statistics Canada’s advance estimate for July points to a 0.8% decline, subject to revision when final data is released. The advance estimate flags potential softness in consumer spending heading into the third quarter. Source: Statistics Canada, The Daily, June 2026 retail trade, released August 21, 2026.
Week Ahead: High-Signal Events
Three key events are on the horizon for Canadian investors.
First, Big Six bank earnings begin the week of August 25. How the major lenders perform relative to expectations could set the tone for the broader financial sector through the fall. Exact dates for individual bank reports remain unconfirmed.
Second, the Jackson Hole central-bank symposium runs August 27–29.
Third, the Bank of Canada’s next rate decision is set for Wednesday, September 2. Markets will be watching for any shift in the central bank’s stance on inflation and economic growth.
The Bottom Line
The TSX’s modest weekly decline masks meaningful sector divergence. While bank stocks retreated ahead of earnings, gold miners found support on firmer metal prices. June retail sales came in above expectations, though July’s advance estimate points to a potential pullback.
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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. Market data as of the August 21, 2026 close.
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.
