Markets gain ground despite ongoing uncertainty
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Summer has a natural way of pressing “pause”, giving us a chance to step out of the day-to-day and take stock of what’s working, what’s changed, and what deserves our attention going forward.
It can also be an ideal time to connect with your investment counsellor to make sure you remain on track to achieve your financial goals. Reviewing your plan, refining your objectives, and making any necessary adjustments can help position you for a successful year ahead with confidence and clarity.
Stocks rebound
In the U.S., equities rebounded strongly from their first-quarter dip, bringing the S&P 500 to a 10.21% year-to-date gain, while the Nasdaq has climbed 20.31% so far in 2026. Market leadership was concentrated in technology and communication services, driven by continued enthusiasm around AI and digital infrastructure spending. That said, the quarter still underscored how quickly narratives can shift. Markets experienced heightened volatility following the announcement of new U.S. tariffs in April. Still, sentiment improved after a 90-day pause on reciprocal tariffs was introduced—an important change that helped support a broader recovery in risk assets.
Canadian equities also delivered solid gains, but lagged U.S. indexes. The S&P/TSX Composite Index is now up 11.16% year-to-date, led by information technology, financials, and industrials. At the same time, Canada’s sector mix remained an important driver of relative performance: energy was among the lagging sectors as oil prices retreated from earlier highs during the quarter, creating headwinds for a resource-heavy market even as the broader index advanced.
Fundamentals were central to the improved market tone, as U.S. corporate earnings were very strong, boosting sentiment. The blended earnings growth rate for S&P 500 companies reached 27.1%, the strongest year-over-year increase since 2021. Strong risk appetite was also evident in capital markets activity and investors' willingness to back ambitious growth stories. In that context, SpaceX’s record-setting US$85.7 billion IPO and first-day valuation exceeding US$2 trillion stood out as a strong indicator of investor enthusiasm for the next [SK1] generation of technology-driven innovation.
As we head deeper into summer, a takeaway from the quarter is that markets can absorb uncertainty, reprice quickly, and move forward when fundamentals support it. A well-diversified approach remains essential as policy headlines, sector leadership, and long-term innovation themes continue to evolve.
I wish you all a pleasant and relaxing summer.
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