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Markets Today: AI Selloff Hammers Global Stocks, Nikkei Slides Into Correction — What It Means for Your Portfolio

  Friday, July 17, 2026 A chip-stock selloff that started on Wall Street on Thursday ripped through Asian markets overnight, sending Japan's Nikkei 225 into technical correction territory and dragging Hong Kong and Shanghai shares lower. The TSX slipped for a second straight session as materials and tech names weighed, while oil held near one-month highs on escalating U.S.-Iran tensions. Here's exactly what moved, and what it means for your RRSP, TFSA and grocery bill. 💡 What It Means for You If you hold Canadian bank stocks or a broad TSX index fund in your RRSP or TFSA, Thursday's pullback was mild by comparison — Canada's heavier weighting toward financials and energy cushioned the blow that hit tech-heavy indexes like the Nasdaq and Nikkei much harder. Elevated oil prices are a double-edged sword: good for energy-sector holdings and the loonie, but a risk for gas prices at the pump if the Strait of Hormuz situation escalates further. 🇨🇦 Canada: TSX Slips as Mater...
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Are rate hikes over for Canada


The Canadian economy is expected to show a modest growth of 0.4% in the third quarter of 2023, according to the latest estimates from Statistics Canada. This is lower than the 0.6% expansion in the previous quarter, and well below the 2.1% growth rate that the Bank of Canada projected in July.

The weak GDP numbers have fueled the speculation that the country may be heading into a recession, as global trade tensions, lower oil prices, and household debt weigh on the economic outlook. 

However, not everyone is convinced that the situation is so dire. Some forecasters argue that the third quarter slowdown was mainly due to temporary factors, such as a strike at a major auto plant, a drop in agricultural output due to drought, and a slowdown in housing construction. They expect that the economy will rebound in the fourth quarter, as these factors dissipate and consumer spending picks up.

Moreover, some forecasters point out that the inflation rate remains within the central bank's target range of 1% to 3%, suggesting that there is no need for further monetary stimulus. They also note that the labour market remains strong, with the unemployment rate at a near-record low of 5.5%, and wage growth at a solid 3.2%.

Therefore, some forecasters believe that the Bank of Canada will maintain its wait-and-see approach, and keep interest rates unchanged until there are clear signs of either a sustained recovery or a prolonged downturn. They argue that the central bank has already done enough to support the economy, by cutting interest rates three times in 2022, and that any further easing could fuel financial imbalances and inflationary pressures.

In summary, the GDP numbers for the third quarter of 2023 are likely to spark more debate about the state of the Canadian economy and the direction of monetary policy. However, some forecasters are more optimistic than others, and think that the rate hikes are over for now, unless there is a significant change in the economic conditions.

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