September 2026 market update

Global markets faced pressure in September as persistent inflation, rising interest rates and geopolitical tensions weighed on investor sentiment. Stock markets declined modestly, while bond yields rose amid concerns about inflation and government deficits. Higher energy prices, partly driven by ongoing conflict in the Middle East, added to inflationary pressures.

Trade tensions between Canada and the U.S. intensified, with tariffs and import restrictions creating further uncertainty for Canadian businesses, exports and employment. Meanwhile, the U.S. Federal Reserve and European Central Bank raised interest rates to combat inflation, while China's economy continued to benefit from strong exports despite weak consumer spending and declining business investment.

Despite September's declines, many equity markets remained positive for the year. The S&P/TSX Composite Index was up 11.11% year to date, while emerging markets continued to show strength. Looking ahead, inflation, interest rate decisions and geopolitical uncertainty will remain important factors influencing markets. Maintaining a diversified portfolio and a long-term investment perspective remains important in this uncertain environment.

Read the September 2026 Market Update from Canada Life Investment Management for more details on the economic forces shaping markets and their potential implications for investors.

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.