Equity markets continued to navigate a mix of economic crosscurrents over the past month, balancing progress on inflation against lingering uncertainty around interest rate policy and corporate earnings. Despite periods of volatility, global markets remain resilient, supported by steady consumer spending, corporate profitability, and cautious central bank guidance.

Canada: Playing It Steady

The Canadian market continued its steady climb this month. Banks and industrial companies helped lead the way, and energy stocks got a boost as oil prices stabilized. While our market doesn’t move as fast as the U.S., it remains a reliable source of dividends and long-term value—two things Canadian investors appreciate.

United States: Tech Still in the Driver’s Seat

The U.S. market pushed higher this month, supported once again by earnings from technology, healthcare, and industrial companies. Even with questions around future interest rate cuts, corporate profits have held up better than expected, and that has helped keep investors optimistic.

International Markets: Quiet but Positive

International markets continue to move forward—not flashy, but quietly contributing to diversification. Japan has been one of the stronger performers this year, while Europe is growing more cautiously. Long-term investors continue to benefit from having part of their investments outside North America.

Bonds: Calm After a Turbulent Year

After a challenging stretch in 2022–2023, bond markets have stabilized. Higher yields mean bonds are once again playing a valuable role in portfolios—providing income and helping reduce volatility when markets get choppy. As central banks look to cut rates gradually in 2025, bonds remain relevant again.

Looking Ahead

Market sentiment continues to be shaped by three primary themes:
1.  Inflation progress – trending lower, but not yet at target
2. Interest rate outlook – gradual easing expected by central banks around the world but timing remains uncertain
3. Earnings resilience – corporate results remain broadly supportive of equity markets

Short-term volatility is still possible as markets adjust to evolving economic data. However, the medium- and long-term outlook remains constructive, supported by strong innovation trends, improving productivity, and healthier-than-expected economic conditions in North America.

Final Thoughts

Periods of uncertainty reward disciplined investors. Staying diversified across asset classes, sectors, and geography remains essential. With interest rates expected to move lower over time, balanced portfolios are well-positioned, and cash sitting on the sidelines may face reinvestment risk if markets continue to advance.

Staying patient and disciplined remains the best strategy—especially as we look ahead to potential interest rate cuts, continued innovation globally, and improving market confidence.

How markets are doing (in Canadian dollars):