Canadian markets turned volatile this week as a strong jobs report and blockbuster bank earnings forced investors to reset expectations for interest rates in 2026. The TSX pulled back from record highs—here’s what’s driving the shift and what to watch next.

The TSX climbed +0.53% last week, with healthcare, telecom, and gold stocks leading the way. Investors now expect steady rates in September and a possible cut in October. All eyes are on Canada’s inflation report this Tuesday.