August was a strong month for global markets, but uncertainty remains. Learn about the key economic and geopolitical developments that could influence market performance in the months ahead.
September 9, 2026
Introduction
Global equity markets finished higher over the month of August 2026. There were some bouts of volatility as geopolitical tensions in the Middle East showed little signs of concluding, while trade tensions between Canada and the U.S. flared up late in the month. Meanwhile, trading in artificial intelligence stocks remains overall bullish, but there are some concerns about their potentially high valuations. Inflation remained elevated over the month, even accelerating in some parts of the world. Inflation concerns are reemerging, which is leaving investors to wonder if central banks may raise interest rates. Data from major economies showed the global economy continues to expand, albeit at a relatively muted pace, as it faces major headwinds from higher prices, geopolitical tensions and trade disruptions.
In Canada, the S&P/TSX Composite Index moved higher over the month, getting a strong performance from the materials and information technology sectors. U.S. equities also posted a gain in August. Yields on 10-year government bonds in Canada and the U.S. finished higher. The price of gold increased over the month, while the price of oil finished largely unchanged.
