Major Market Indexes Retreat as Treasury Yields Show No Sign of Relenting

The Canadian Vanguard Stock Market Report Weekend, September 18 – 20, 2026, Edition

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The Toronto Market

Friday’s Toronto Market Index

The Toronto S&P/TSX Composite Index fell 67.61 points, or 0.19%, on Friday, closing at 35,806.65. The TSX declined slightly during the session but closed well above its intraday lows.

                                                                                                                                                                                         

More notably, the index was sharply lower for several hours during the first half of the trading session. It then recovered gradually during the latter half of the session before closing approximately 0.20% lower for the day. Despite the decline, the TSX remained below the psychologically important 36,000 level.

The cost of borrowing money continued to trend higher on Friday as Treasury yields remained elevated.

The TSX closed in negative territory on Friday after finishing higher on Thursday. Thursday’s gain came one day after the U.S. Federal Reserve raised interest rates by a quarter percentage point. The index subsequently gave back some of those gains on Friday.

One positive point to note is that the 0.20% decline was relatively modest. Another encouraging development was the late-session strength: the index was rising during the final half-hour of trading, suggesting some buying interest into the close.

From a technical perspective, the TSX remains below its 25-day moving average and is slightly below its 50-day moving average. However, it continues to maintain a significant gap above its 200-day moving average.

Friday’s TSX Market Statistics

At the TSX, declining issues (decliners) outnumbered advancing issues (advancers) on Friday. Specifically, there were 1,264 decliners and 865 advancers, producing a decliner-to-advancer ratio of 1.46 to 1, or approximately three decliners for every two advancers. A total of 125 issues finished unchanged.

The exchange recorded 19 new 52-week highs and 56 new 52-week lows, compared with 30 new 52-week highs and 37 new 52-week lows on Thursday. Market breadth was negative on Friday, with the ratio of new 52-week highs to new 52-week lows deteriorating to approximately 1:3, compared with 4:5 on Thursday.

The number of new 52-week highs decreased by approximately 37%, while the number of new 52-week lows increased by approximately 51% compared with Thursday. Overall, the Toronto market’s internal indicators weakened moderately on Friday.

Total trading volume on the TSX reached 1,007,832,469 shares, approximately 185% higher than the 353,430,398 shares traded on Thursday. The combination of a slight decline in the TSX and a sharp increase in trading volume is notable.

Given that the index declined only modestly, the significant increase in volume appears more consistent with profit-taking than with widespread panic selling. Nevertheless, the combination of negative breadth, fewer new highs, more new lows, and substantially higher volume suggests that the market is not currently displaying the characteristics of a strong upward trend.

Friday’s Toronto TSX Market Wrap-Up Report

The Toronto S&P/TSX Composite Index retreated modestly on Friday, falling 67.61 points, or 0.19%, to close at 35,806.65. While the headline decline was relatively small, the underlying market internals were noticeably weaker, giving Friday’s session a more bearish tone than the 0.19% decline in the index alone would suggest.

Only two major sectors finished higher. Financials led the advancing sectors, gaining 0.23%, while Basic Materials edged up 0.03%. On the downside, Consumer Discretionary declined 0.05%, Healthcare fell 1.00%, Energy lost 0.50%, Technology declined 0.52%, and Industrials dropped 0.98%. Durable Consumer Goods & Services was the session’s weakest sector, falling 1.33%.

The combination of negative breadth, weakness across most major sectors, and higher trading volume points to a market that lacked broad-based buying support. Declining issues outnumbered advancing issues by 1,264 to 865, producing a decliner-to-advancer ratio of 1.46 to 1. The TSX also recorded only 19 new 52-week highs against 56 new 52-week lows.

Trading volume was particularly notable. More than 1.0 billion shares changed hands on the TSX, approximately 185% above the previous session’s volume. Despite the substantial increase in volume, the index declined only modestly. This combination can be consistent with increased profit-taking and repositioning rather than broad-based panic selling, although the negative market breadth indicates that sellers had greater participation than buyers.

From a technical perspective, the TSX remains below the psychologically important 36,000 level. The index is also below its 25-day moving average and slightly below its 50-day moving average, while remaining comfortably above its 200-day moving average. The index did strengthen into the close, including during the final half-hour of trading, which helped limit the day’s decline.

Weekly Sector Performance

The weekly picture was considerably more balanced than Friday’s session. Six sectors posted gains during the week, with Utilities leading the advancing sectors with a 1.62% gain. Healthcare rose 1.27%, Financials gained 0.78%, and Energy advanced 0.71%.

On the weaker side, Basic Materials declined 0.03%, Industrials fell 0.97%, and Telecommunications Services declined 2.14%, making it the weakest-performing sector of the week.

The weekly performance therefore shows continued strength in several defensive and interest-sensitive areas, while some economically sensitive sectors remained under pressure.

Canadian Bank Stocks

Friday’s trading among the major Canadian banks was mixed, with Canadian Imperial Bank of Commerce (CM) and National Bank of Canada (NA) standing out on the upside.

CIBC gained 1.24% and traded approximately 5.8 million shares, more than twice its average daily volume of approximately 2.4 million shares. The combination of a meaningful price gain and above-average volume made CIBC one of the more notable large-cap financial stocks of the session.

National Bank also performed well, gaining 0.95% on volume of approximately 3.6 million shares.

Meanwhile, some of the banks that had been among the stronger performers over the previous two weeks took a breather. Toronto-Dominion Bank (TD) gained 0.65%, Bank of Montreal (BMO) rose 0.44%, while Bank of Nova Scotia (BNS) slipped 0.02%.

The relative strength in CIBC and National Bank was notable because CIBC had been lagging the other major Canadian banks over much of the previous two weeks. Friday’s stronger performance, particularly on elevated volume, is therefore worth monitoring in subsequent sessions.

Key Takeaways for Traders and Investors

• The headline decline was modest, but market breadth was considerably weaker. Decliners outnumbered advancers by 1.46 to 1, while new 52-week lows substantially exceeded new highs.

• Volume was the standout statistic. More than 1 billion shares traded, approximately 185% above the previous session. Traders should watch whether elevated volume continues or quickly returns to more normal levels.

• The TSX remains below 36,000. The index also remains below its 25-day and 50-day moving averages, although it is still well above its 200-day moving average.

• Late-session buying provided some encouragement. The TSX recovered from its intraday weakness and was rising during the final portion of trading.

• Financials provided relative strength. The sector gained 0.23%, with CIBC and National Bank among the stronger large-cap bank stocks.

• The broader market did not demonstrate strong upside momentum. Most major sectors declined, market breadth was negative, and new lows significantly outnumbered new highs.

• The next few sessions will be important for confirmation. Traders may want to monitor whether the TSX can reclaim 36,000 and its short-term moving averages, while also watching breadth, new highs versus new lows, and trading volume for evidence of broader participation.

 

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The US Markets

Friday’s U.S. Market Indexes

U.S. stock market indexes finished mixed on Friday. The Dow Jones Industrial Average fell 95.40 points, or 0.18%, to close at 51,682.64. The S&P 500 gained 12.74 points, or 0.17%, finishing at 7,650.50. The Nasdaq Composite advanced 104.25 points, or 0.39%, to close at 26,522.55. The Russell 2000 declined 14.23 points, or 0.50%, ending the session at 2,860.40.

     

The major indexes therefore finished the session with a mixed performance. The Dow Jones remained the weakest of the major large-cap indexes, while the Nasdaq continued to show relative strength. The Nasdaq closed above 26,000 and extended its recent advance, reinforcing the current short-term upward trend. More on the Nasdaq’s performance and technical position will be discussed in the U.S. Market Wrap-Up Report later in this section.

Small-cap stocks were the weakest performers on Friday, with the Russell 2000 falling 0.50%. Continued strength in Treasury yields remains an important consideration for small-cap stocks, as higher borrowing costs can place greater pressure on smaller companies and make their valuations more sensitive to interest rates.

Technology stocks provided important support for the Nasdaq, helping the index advance despite weakness in several other areas of the market. Traders should continue to monitor whether technology leadership persists, as sustained strength in this group could help determine whether the Nasdaq can extend its advance in the short term.

From a technical perspective, the Nasdaq remains above both its 25-day and 50-day moving averages, maintaining a constructive short-term position. The S&P 500 is currently sitting around its 25-day moving average while remaining clearly above its 50-day moving average.

The Dow Jones and Russell 2000 remain below their respective 25-day and 50-day moving averages. However, both indexes remain well above their 200-day moving averages, indicating that their longer-term technical positions remain considerably stronger than their short-term positions.

Overall, Friday’s market action continued to show a divergence between the major indexes. The Nasdaq remained the strongest, supported by technology stocks, while the Russell 2000 continued to lag. The Dow also remained under pressure, leaving the market with a mixed short-term technical picture despite continued strength in the Nasdaq and S&P 500.

Friday’s U.S. Market Statistics

New York Stock Exchange (NYSE):  NYSE market breadth was decidedly negative on Friday, with declining issues substantially outnumbering advancing issues. There were 2,889 decliners, 1,619 advancers, and 447 issues unchanged, producing a decliner-to-advancer ratio of 1.78 to 1, or approximately two decliners for every advancer.

The 52-week high/low statistics were also weak. The NYSE recorded 92 new 52-week highs and 346 new 52-week lows, compared with 112 new highs and 164 new lows on Thursday. The number of new 52-week highs declined approximately 18% from Thursday, while the number of new 52-week lows more than doubled, increasing approximately 111%.

As a result, new 52-week lows substantially outnumbered new 52-week highs, with the number of new highs representing only about 27% of the number of new lows. This was a meaningful deterioration in the market’s longer-term breadth indicators and points to increased selling pressure beneath the surface.

Trading activity was also substantially higher. Total NYSE volume reached 9.31 billion shares, approximately 78% higher than Thursday’s 5.21 billion shares.

The combination of negative daily breadth, a sharp increase in new 52-week lows, and substantially higher trading volume made Friday a bearish session for the NYSE. Only the Technology sector posted a gain, adding to the broadly negative character of the session.

At the same time, one session does not establish a sustained change in market direction. The deterioration in the 52-week high/low data is worth monitoring over the next several trading sessions to determine whether Friday represented a temporary deterioration or the beginning of a more persistent weakening in market internals.

NASDAQ:  NASDAQ breadth was also negative on Friday, although the deterioration was less pronounced than on the NYSE. There were 2,873 declining issues and 2,077 advancing issues, with 203 issues unchanged. This produced a decliner-to-advancer ratio of 1.38 to 1, or approximately seven decliners for every five advancers.

The 52-week high/low data remained considerably weaker than the daily breadth statistics. The NASDAQ recorded 72 new 52-week highs and 244 new 52-week lows, compared with 95 new highs and 158 new lows on Thursday.

The number of new 52-week highs declined approximately 24% from Thursday, while new 52-week lows increased approximately 54%. Consequently, new 52-week highs represented only about 30% of new 52-week lows on Friday.

This divergence is important. The Nasdaq Composite itself advanced 0.39% on Friday, but beneath the index level, the 52-week high/low data remained weak. The market therefore continues to show a tug-of-war between strength in the major technology-oriented index and weakness among a broader group of individual stocks.

Trading volume provided an additional positive consideration. Total NASDAQ volume reached approximately 14.04 billion shares, 36% higher than Thursday’s 10.30 billion shares. The Nasdaq Composite rose while volume increased substantially, indicating that Friday’s advance occurred with significant trading participation.

However, the increased volume should be viewed alongside the weak breadth and 52-week high/low statistics. The combination suggests that there was substantial investor activity behind Friday’s advance, but the participation was not broad-based across the entire Nasdaq market.

Key Takeaway for Traders and Investors

Friday produced a mixed set of signals beneath the surface of the U.S. indexes.

• NYSE internals were clearly weak. Decliners outnumbered advancers by 1.78 to 1, while new 52-week lows dramatically exceeded new highs.

• NASDAQ internals were also weak despite the index gaining 0.39%. The Nasdaq’s advance was therefore not accompanied by broad-based strength across individual issues.

• The 52-week high/low data remains a concern. New lows substantially exceeded new highs on both exchanges, indicating that weakness remains widespread beneath the major indexes.

• Volume increased sharply on both exchanges. This indicates substantial participation and makes the session more significant than a low-volume move.

• The Nasdaq’s price action remains stronger than its internal statistics. Technology leadership helped the index advance, but traders should monitor whether that strength begins to broaden to more individual stocks.

• Friday’s data should not be viewed in isolation. The next several sessions will be important in determining whether the deterioration in market internals persists or reverses.

Friday’s U.S. Market Wrap-Up Report

The major U.S. indexes finished mixed on Friday, with technology stocks providing the primary source of strength. The Nasdaq Composite advanced 0.39%, while the S&P 500 gained 0.17%. The Dow Jones Industrial Average declined 0.18%, and the Russell 2000 fell 0.50%.

The market’s headline performance therefore looked relatively stable, but the underlying market internals were considerably weaker. Technology was the only major sector to finish higher, while most other sectors declined. When only one of the eleven major sectors advances, traders and investors should pay close attention to the lack of broad participation.

Technology’s strength was enough to keep the Nasdaq in positive territory and above the 26,000 level. The Nasdaq also remains above both its 25-day and 50-day moving averages, maintaining its short-term upward trend. However, the strength of the index continues to contrast with weaker breadth across the broader market.

Basic Materials, Consumer Discretionary, Healthcare and Utilities were among the stronger sectors on the day based on the sector data, while Financials also posted a gain of 0.58%. At the weaker end, Durable Consumer Goods & Services declined 0.35%, while Telecommunications Services was the session’s weakest sector, falling 2.22%.

Market Internals Tell a More Cautious Story

The divergence between the major indexes and the broader market was particularly noticeable in Friday’s market statistics.

On the NYSE, declining issues outnumbered advancing issues by 1.78 to 1. The exchange recorded 92 new 52-week highs against 346 new 52-week lows. On the Nasdaq, there were 2,873 decliners and 2,077 advancers, while new 52-week lows outnumbered new highs by more than three to one.

This means that the Nasdaq’s 0.39% gain was not accompanied by broad-based strength across individual stocks. Technology leadership was sufficient to lift the index, but many individual stocks continued to experience weakness.

Trading volume was also substantially higher. NYSE volume increased approximately 78%, while Nasdaq volume rose approximately 36% from the previous session. Higher volume accompanying the Nasdaq’s advance indicates substantial trading participation, although the weak breadth and high number of new lows suggest that participation was not uniformly bullish.

The Russell 2000’s 0.50% decline was another important signal. Small-cap stocks continued to lag the large technology-oriented indexes, while Treasury yields remained elevated. Persistent higher yields can create additional pressure on smaller companies because of their greater sensitivity to financing costs and interest rates.

Technology and Semiconductor Stocks

Technology stocks continued to provide leadership, with several semiconductor-related companies posting significant gains.

Advanced Micro Devices (AMD) rose 2.70%, while Intel (INTC) slipped 0.18% despite heavy trading volume of approximately 174.9 million shares.

The semiconductor group continued its recent strength. Sandisk (SNDK) jumped 10.99%, Arm Holdings (ARM) advanced 4.04%, and Micron Technology (MU) gained 3.92%. Tower Semiconductor (TSEM) also advanced 1.99%, closing at $223.60 on approximately 9.4 million shares traded.

The continued strength in semiconductor stocks is worth monitoring because technology and semiconductor leadership remains an important factor behind the Nasdaq’s recent advance. TSEM, in particular, may be worth keeping on a trader’s watchlist given Friday’s price action and trading volume, although continued strength would need to be confirmed by subsequent sessions.

Key Takeaways for Traders and Investors

• The Nasdaq remains the technical leader. It closed above 26,000 and remains above its 25-day and 50-day moving averages.

• Market breadth is the main caution signal. The major indexes do not currently have broad participation behind them, particularly given the large number of new 52-week lows.

• Technology remains critical. Semiconductor stocks continued to show strong momentum and helped keep the Nasdaq in positive territory.

• Small caps continue to lag. The Russell 2000 fell 0.50% and remains below its 25-day and 50-day moving averages.

• Volume increased significantly. Higher trading volume on both the NYSE and Nasdaq indicates substantial market participation and makes the divergence between index performance and breadth particularly noteworthy.

• Treasury yields remain an important variable. Continued strength in yields may continue to influence interest-sensitive and smaller-cap stocks.

• The key issue going forward is breadth. If the Nasdaq continues to rise while new 52-week lows remain substantially above new highs, traders should recognize that index strength is being driven by a relatively narrower group of stocks.

• The next few sessions will be important. A broader improvement in advancing issues, new highs, and sector participation would provide evidence that the market’s strength is becoming more widespread. Conversely, continued deterioration in these indicators would reinforce the cautious signals beneath the major indexes.

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(c) This article is published by The Canadian Vanguard on September 19, 2026