NEWS & EVENTS

While there are no major economic data releases in Canada next week, important economic data releases in the U.S. includes retail sales, unemployment, and inflation data. We see compelling opportunities in U.S. mid‑caps, overseas developed small- and mid‑cap equities, and emerging markets. For investors who are underexposed to the sector, this risk‑off phase may present opportunities to add to tech and U.S. large‑cap positions, though many investors may find they are already overweight. For portfolios, we believe the rotational nature of the market is creating opportunities to diversify and is easing valuation concerns, particularly as tech earnings continue to outpace price performance.

“AI is driving extreme reactions,” Ivan Feinseth, a market analyst at Tigress Financial, told ABC News. The Dow Jones Industrial Average hit a fresh record high on Monday, after topping 50,000 for the first time last week. “Additionally, we suspect that benchmark revisions will reveal that the labor market was weaker than previously believed, a development possibly opening the door to further easing of monetary policy in the second half of 2026.”

Rather than focusing on fear-driven narratives, many investors have emphasized earnings momentum and the staying power of consumer demand. 1 Investors watched the S&P 500 narrowly avoid a bear market last April and then regain footing as fundamentals reasserted themselves. With changes to taxes and interest rates, it’s a good time to meet with a wealth advisor.

Get real-time market data, news, and live updates on major indices like the Dow Jones, NASDAQ and S&P500. Typical warning signs leading to a pullback in the stock market include overvalued stock prices, rising interest rates, and increasing economic uncertainty. Recoveries also vary because markets often “price in” new information before it appears in lagging economic data, and investor confidence can return gradually as uncertainty clears. “New all-time stock market highs are often followed by more all-time highs,” he points out. That combination has helped support risk appetite, even as unresolved policy and economic questions still shape daily market moves. Mixed signals in economic data have also left markets uneven, some analysts added.

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Despite recent volatility, we remain constructive on the economic cycle and confident in our call for investors to double down on diversification this year. And while much of this investment is funded through internal cash flow, mega‑cap technology companies are starting to rely more heavily on debt to finance the rapid expansion as they transition away from historically capital‑light business models. For investors looking to add exposure, a diversified approach across companies and business models may offer a more prudent path, in our view. After years of tech-led dominance, the market is experiencing a meaningful rotation toward traditional “old economy” sectors, a shift that aligns well with the TSX’s heavier exposure to these areas and that has contributed to its recent outperformance. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Authors/presenters may own the stocks they discuss.

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These AI agents, including new offerings like Anthropic’s legal assistant, have heightened fears that existing business models could be disrupted faster than incumbents can adapt. Taken together, in our view, these drivers suggest the North American economy remains well‑supported, with the potential for above‑trend growth in the U.S. that can help lift revenues across a broader set of sectors. An index is unmanaged, cannot be invested into directly and is not meant to depict an actual investment. The graph shows that “old economy” sectors like transports, chemicals and oil & gas are taking the lead as investors rotate away from software companies. In our view, this dynamic suggests that market action reflects rotation and repricing, rather than broad deterioration in underlying fundamentals. Avanti Feeds shares gain over 4% after positive Q3 results across parameters

• Not for use as a primary basis of investment decisions.
• The iShares Expanded Tech-Software Sector ETF rose again on Tuesday, as traders continued to buy the steep selloff in software stocks.
• In this episode, Emma Wall and Matt Britzman unpack a busy week for markets and what it means for investors.
• For investors who are underexposed to the sector, this risk‑off phase may present opportunities to add to tech and U.S. large‑cap positions, though many investors may find they are already overweight.

This is for informational purposes only and should not be interpreted as specific investment advice. The Weekly Market Update is published every Friday, after market close. In fact, several indicators suggest growth may be firming as the industrial cycle turns a corner. But one “R” we do not expect in 2026 is a Recession, an outcome that would threaten the durability of the bull market. The Rotation, Repricing, and waning Risk appetite we’re seeing may contribute to choppy market conditions in the near term. We view the current phase as a rebalancing, one that is creating opportunities across sectors and helping normalize valuations after an extended period of concentrated growth leadership.

John Canavan, a U.S. lead analyst at Oxford Economics, acknowledged a risk of elevated volatility but he forecasted an uptick in the major stock indexes over the course of this year. Kenwell, of eToro, downplayed the risk posed by geopolitical unrest or AI, saying potential volatility could arise from unanticipated economic developments. Many other stocks turned higher late last week, including companies in the energy and industrial sector, according to Kenwell. Some tech giants, meanwhile, revealed plans for massive investments in AI. “There’s a worry that AI will eventually disrupt those businesses,” Bret Kenwell, an investing analyst at eToro, told ABC News.

The AI nervousness happens to be overlapping with a similar degree of concern for the U.S. job market. Edward Jones and its independent affiliate in the United States, collectively, serve more than 7 million investors. Edward Jones’ Canadian advisors may only conduct business with residents of the province(s) in which they are registered.

When interest The Coin Republic: ChatGPD vs ChatGPT rates rise, it typically becomes more expensive to borrow money, which can slow economic activity and lead to declines in stock prices as investors adjust their expectations. Yes, stock market corrections can occur even when the economy is strong. That range and average helps distinguish corrections and bear markets from routine market volatility, such as smaller pullbacks that may not reflect a broader reassessment of growth, inflation or earnings.