This is the midday brief for Fri, Aug 28, 2026. View latest

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Midday Edition. Friday, August 28, 2026

Curated market context for passive investors.

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$45.90
-0.22%

Headline

XEQT turns lower by midday as Canadian materials and gold retreat sharply.

XEQT fell into negative territory by midday after opening with modest strength, retreating 0.42 percentage points from the morning's +0.20% gain. Canadian equities supplied most of the decline, down 0.90% as materials slid 3.02% and energy weakened alongside gold prices dropping 3.09%. The U.S. sleeve held near flat at +0.11%, with technology profit-taking offset by strength in communication services and discretionary stocks, while international developed and emerging markets both turned slightly negative.

How large is this afternoon's move?

Typical day · This afternoon's -0.22% move is 0.4× the 20-day average move.

This scale measures size, not what to do. Larger moves are a normal part of holding a global all-equity fund.

The Regions

  • Canada

    25.85% of XEQT

    • XIC.TO
    -0.90% -0.23 pts from XEQT

    The Canadian sleeve declined 0.90%, accounting for roughly three-quarters of XEQT's midday weakness. Materials posted a sharp 3.02% loss alongside gold's 3.09% pullback, contributing most of the sleeve's drag. Energy stocks also declined 0.78%, while financials fell modestly at 0.31%, driven by inflation concerns and rising rate-hike expectations.

    Canada market region icon

  • United States

    44.78% of XEQT

    • XTOT.TO
    • ITOT
    +0.11% +0.05 pts to XEQT

    The U.S. sleeve remained slightly positive at +0.11%, held aloft by communication services and consumer discretionary gains of 1.12% and 0.80% respectively. Technology retreated 1.23% on profit-taking after recent strength, while industrials and health care also declined. A modest currency tailwind from dollar strength likely supported the overall sleeve return relative to its domestic components.

    United States market region icon

  • Intl Developed

    24.43% of XEQT

    • XEF.TO
    -0.04% -0.01 pts from XEQT

    International developed markets edged down 0.04%, with mixed signals across the region. Switzerland, the UK, and Australia recorded modest declines of 0.71%, 0.27%, and 0.50% respectively, while Japan dipped just 0.09%. France and Germany posted small gains, offering slight offset to broader weakness.

    Intl Developed market region icon

  • Emerging Mrkts

    4.76% of XEQT

    • XEC.TO
    -0.25% -0.01 pts from XEQT

    Emerging markets declined 0.25% as technology-heavy South Korea fell 0.80%, snapping a three-day winning streak amid external uncertainty. Taiwan slipped 0.43%, while Brazil and South Africa posted sharper losses of 1.52% and 1.10%. China provided modest offset with a 0.36% gain, insufficient to stem the sleeve's overall pullback.

    Emerging Markets market region icon

Colored bars represent biggest contributors to XEQT's move this afternoon (threshold = ±0.1 percentage points). Returns are daily ETF price moves for tracked regional or sector categories and may differ slightly from raw index movements.

The Hold Line

The reversal from early gains to a slight midday decline reflects uneven sentiment around Warsh's inflation commentary and shifting expectations for rate hikes. Canada bore the session's weight, driven by a sharp materials pullback and energy weakness, while the U.S. sleeve's technology sector retreated from earlier strength. For a long-term holder, modest daily swings around a resilient rolling-month gain of 2.72% and a year-to-date return of 15.07% remain the relevant context.

Signals

  • 01

    Rising Treasury yields pressure rate-sensitive sectors

    The 10-year US Treasury yield climbed 103 basis points to 4.72% as expectations for Fed rate hikes intensified following Warsh's speech. Rate-sensitive sectors such as Canadian materials and utilities tend to weaken when long-term yields rise sharply, as their cash flows are discounted more heavily. This dynamic reinforces today's materials-led decline in the Canadian sleeve.

  • 02

    Dollar strength and gold weakness signal shifting sentiment

    Gold fell 3.09% alongside a broad measure of dollar strength rising 0.52%, reflecting a shift in inflation expectations and safe-haven demand. The U.S. dollar's strength also created a headwind for international equity returns when measured in Canadian dollars, though this effect was partially masked by the modest size of the Intl Developed and Emerging Markets declines. For a global sleeve holding many dollar-denominated assets, currency fluctuations of this magnitude warrant attention even on small move days.

  • 03

    Tech profit-taking after recent rally strength

    Technology shares retreated 1.23% in the U.S. sleeve after two prior days of outsized gains, with investors taking profits as Warsh's remarks on inflation dampened near-term enthusiasm for growth-oriented sectors. The U.S. sleeve's small overall gain masks meaningful sector rotation away from tech into defensive and cyclical areas, worth monitoring as a sign of restoring breadth in the market. This pattern is worth watching for signals about whether recent tech concentration will continue or moderate.

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