Stocks slipped in Toronto after being spooked by remarks from Fed Chair Kevin Warsh Friday.
The TSX had fallen 144.96 points by noon ET to 36,689.29. On the week so far, the index remained buoyant 69 points, or 0.2%.
The Canadian dollar subsided 0.22 cents to 71.97 cents U.S.
Consumer staples were lifted by a 41-cent gain in Alimentation Couche-Tard to $83.81. The firm said on Wednesday it was launching a voluntary tender offer for all shares of Polish convenience store chain Zabka at 32 zlotys each.
Separately, U.S. President Donald Trump renamed Lake Ontario "Lake America" on Thursday, deepening a dispute with Canada that has already spawned tariffs on tens of billions of dollars in cross-border trade.
Meanwhile, Canada's ambassador to Washington, Mark Wiseman, said on Thursday that the nation cannot accept a trade deal with the U.S. unless it ensures the survival of a robust Canadian auto assembly and parts industry.
Traders raised expectations for a Fed rate hike in September after Warsh said recent inflation data did not signal a shift in trend, adding that the Fed still had "more work to do" before it could be confident inflation was moving toward its 2% target.
The Bank of Canada is widely expected to keep interest rates unchanged in September, with traders pricing in a 45.9% chance of a rate hike in December,
On the economic front, Statistics Canada reported gross domestic product increased 0.8% in the second quarter of 2026, led by higher exports, household spending and business capital investment.
ON BAYSTREET
The TSX Venture Exchange nicked higher 0.22 points to 1,004.71. On the week so far, the index has put on 16 points, or 1.65%.
Eight of the 12 TSX subgroups dived midday, with gold plummeting 1.5%, while energy and materials each slumping 1.1%.
The four gainers were led by consumer discretionary and real-estate issues, each up 0.2%, while telecoms nicked up 0.1%.
ON WALLSTREET
Stocks rose on Friday and headed for a winning week after Federal Reserve Chairman Kevin Warsh reassured investors about concerns over current inflation trends.
The Dow Jones Industrials added 105.94 points to 53,675.28.
The S&P 500 regained 13.34 points to 7,744.33.
The NASDAQ Composite improved 27.44 points to 26,568.79.
With Friday’s gains, the three major indexes are on track to end the week higher. The Dow is heading for a gain of nearly 1%. If the Dow ends positive, it would mark the blue-chip index’s first winning week in three. The S&P 500 and NASDAQ are on pace for an advance of roughly 1% and almost 2%, respectively.
In his remarks at the central bank’s annual symposium in Jackson Hole, Wyoming, Warsh said, “While this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved.”
He also said, “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That’s our job . . . our mandate . . . and our charge to keep.”
Investors also digested more earnings results. Gap shares jumped 13% despite a mixed quarterly report as the retail announced a new chief executive for the struggling Old Navy brand. Marvell Technology slid about 8% after issuing current-quarter guidance for non-GAAP gross margin that disappointed the Street.
Traders are looking ahead to Warsh’s planned speech at the central bank’s annual symposium in Jackson Hole, Wyoming. While not tied to a formal policy meeting, investors will be watching for signals about where Warsh believe interest rates could go next.
Fed funds futures are pricing in a roughly 64% likelihood that central bank holds rates steady at its meeting next month.
Prices for the 10-year Treasury were sharply lower, raising yields to 4.71% from Thursday’s 4.67%. Treasury prices and yields move in opposite directions.
Oil prices handed back 31 cents to $83.22 U.S. a barrel.
Gold prices faltered $61.30 to $4,602.70 U.S. an ounce.
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