Canada Tariffs Hit; Stocks Snap Win Streak

US slaps 50% tariffs on $20B Canadian goods after trade talks collapse; stocks snap 3-week win streak; oil at one-month high; Bitcoin surges 22%.

The U.S. imposed 50% tariffs on ~$20 billion in Canadian goods Saturday morning after trade talks collapsed Friday night. PM Carney suspended negotiations and vowed "dollar for dollar" retaliation. USTR Greer blamed Canada for last-minute changes; no further talks are scheduled.

All three major indexes rose Friday but still posted their first weekly loss in four weeks. S&P 500 +0.4% to ~7,674; Dow +1% (up ~517 pts) to ~53,277; Nasdaq edged higher. For the week: S&P −1.43%, Nasdaq −2.05%, Dow −0.85%, Russell 2000 −1.65%.

Treasury Sec. Bessent's midweek move to increase long-dated bond buybacks briefly calmed the market — 30-yr yield slid from 5.33% to ~5.18% — but yields crept back to ~5.26% by Thursday. Bonds steadied Friday but remain volatile as investors question whether buybacks are a durable fix.

Brent crude settled near $93.78, WTI ~$86.20, hitting one-month highs as Trump threatened sanctions on Iran's trading partners. Oil is up roughly 6% on the week, adding inflation pressure ahead of next week's PCE data.

Bitcoin jumped ~6.6% Friday to ~$78,000, extending a five-day rally of roughly 22% that liquidated ~$1.2B in short positions. The surge comes despite equity market weakness and coincides with rising crypto risk appetite.

• Tue Aug 25: Conference Board consumer confidence (expected to show further August decline after July slip) • Later in week: PCE inflation — the Fed's preferred price gauge • Fri Aug 28, 10am ET: Fed Chair Kevin Warsh keynote at Jackson Hole symposium (Aug 27–29) — the marquee event for rate-path clues • Canada tariff fallout: watch for retaliation details and any USMCA renegotiation timeline impact

CNBC's survey of six major investors flagged trade war escalation, bond market dislocation, and geopolitical risk as top concerns — with diversification the one strategy all agreed on.