TLDR
- US stock futures slipped Monday after US-Canada trade talks broke down over the weekend
- The US imposed a 50% tariff on roughly $20 billion of Canadian imports, effective immediately
- Canada’s PM Mark Carney vowed to match the tariffs dollar for dollar starting September 8
- Nvidia earnings on Wednesday are being watched closely as a key test for AI stocks
- The US-Iran conflict is pushing energy prices higher, with inflation already running at 3.4%
Wall Street started the week on shaky ground as investors weighed a fresh trade dispute with Canada, rising energy prices, and the looming Nvidia earnings report.
US stock futures were mixed on Monday morning. Dow Jones futures edged lower, while S&P 500 and Nasdaq futures fell 0.1% and 0.3% respectively.
All three major indexes ended last week in the red. The Dow fell 0.85%, the S&P 500 dropped 1.4%, and the Nasdaq slid 2.1%.
US-Canada Trade Talks Fall Apart
Trade negotiations between the US and Canada collapsed late Friday night. The US responded by slapping a 50% tariff on around $20 billion worth of Canadian goods, which took effect at 12:01 a.m. Saturday.
🇺🇸🇨🇦 UPDATE: The 50% U.S. tariffs on $20 BILLION of Canadian goods are now officially in effect.
Canada's PM Carney has set September 8 for dollar-for-dollar retaliation targeting U.S. steel, dairy, appliances, agricultural equipment and electronics.
No further talks are… https://t.co/3ttNGaByNS pic.twitter.com/X03UFPDKBt
— Coin Bureau (@coinbureau) August 23, 2026
The tariffs cover a wide range of products, from dairy and alcohol to plywood and clothing.
Canadian Prime Minister Mark Carney called the move an “attack” and a “miscalculation.” He promised to respond with equal tariffs starting September 8 to protect Canadian workers, farmers, and businesses.
President Trump posted on social media that “Canada wants the benefits of being a State, without being one!!!”
Iran Conflict Pushes Oil and Inflation Higher
The US is also engaged in a military conflict with Iran, with control of the Strait of Hormuz at the centre of the dispute.
Minneapolis Federal Reserve President Neel Kashkari warned that the conflict is driving up energy prices and putting upward pressure on inflation.
“The longer it goes on, the bigger effect it ends up having on the US economy and on inflation,” Kashkari said on CBS News.
Brent crude jumped 6.63% last week to $94.39 a barrel. Gas prices at the pump averaged $4.099 a gallon on Sunday, up from $3.150 a year ago.
July inflation came in at 3.4%. Kashkari said he is not confident inflation will return to the Fed’s 2% target anytime soon.
Treasury Secretary Scott Bessent is expected to announce details of new economic sanctions against Iran on Monday. He described the measures as “an economic D-Day.”
All eyes then shift to Nvidia on Wednesday. The chipmaker reports second-quarter earnings, and the results will be closely watched as a gauge of the health of the AI spending boom.
Also due Wednesday are the July personal consumption expenditures report and a revised second-quarter GDP estimate.
The Federal Reserve’s Jackson Hole Symposium also takes place this week, adding another layer of scrutiny to an already busy calendar for markets.
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