“Someone's sitting in the shade today because someone planted a tree a long time ago.” - Walter J. SchlossWarren Buffett
Last Week’s Overview
| Index |
Performance |
| TSX Composite |
-1.11% |
| Dow Jones |
0.69%
|
| S&P 500 |
-0.83% |
| NASDAQ |
-2.09% |
Source: Bloomberg (June 25, 2026)
Weekly Insights
Each week, we break down the key events and market movements shaping the investing landscape. From economic data to investor sentiment and global headlines, this section captures what mattered most, and how it impacted markets.
Consumer Spending Remains Resilient as Incomes Rise
Inflation-adjusted U.S. consumer spending rose 0.3% in May while personal income climbed 0.7%, and real disposable income posted its first increase of the year. With consumers accounting for roughly two-thirds of the economy, this resilience, supported by a healthy labour market and steady wage growth, provides a constructive backdrop for corporate earnings.
For long-term investors, these trends reinforce the value of holding high-quality companies that can keep growing earnings across varying economic environments.
Source: Bloomberg (June 25, 2026)
Artificial Intelligence Investment Begins Generating Meaningful Returns
The buildout of artificial intelligence is shifting from an investment story into a revenue story, with quarterly global AI revenue excluding China surpassing estimated infrastructure depreciation costs for the first time.
Technology leaders, including Microsoft, Amazon, Google, and Meta, continue to drive this transformation, and future data centre lease commitments among the largest cloud providers now exceed $850 billion. For investors, the opportunity extends well beyond semiconductors to cloud services, software, energy infrastructure, and digital services positioned to benefit from widespread AI adoption.
Source: Bloomberg (June 25, 2026)
Equity Markets Advance as Strong Fundamentals Support Confidence
North American equity markets moved higher as investors responded to resilient economic data, encouraging corporate outlooks and continued strength in AI-related investment. Technology shares led the advance after Micron Technology delivered stronger-than-expected guidance, while first-quarter GDP growth was revised upward to an annualized 2.1%, and Treasury yields remained relatively stable.
The underlying fundamentals (resilient earnings, healthy consumer demand and improving productivity) remain supportive of diversified portfolios focused on high-quality businesses.
Source: Bloomberg (June 25, 2026)
Key Drivers of Our Outperformance
We believe in transparency when it comes to where our outperformance is coming from. This section spotlights a top-performing company we hold, a sector where we've taken a winning position, and a strategy that has driven recent success across our portfolios.
- Top Company: Novo Nordisk A/S (NVO)
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- Novo Nordisk was our top performer last week, advancing 9.11% as investor sentiment improved around the company's obesity and diabetes franchise. This rebound reflects renewed confidence that Novo can defend its leadership in the GLP-1 market while advancing its next generation of treatments. With demand for metabolic disease therapies expected to remain structurally strong, Novo remains well-positioned to benefit from long-term health care spending trends.
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- Top Sector: Health Care
Health Care led our performance last week, supported by gains in Novo Nordisk and steady investor demand for defensive growth companies. Interest in innovative pharmaceutical and biotechnology businesses remained elevated, with investors favouring companies capable of delivering durable earnings growth regardless of the broader economic backdrop.
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- Structural drivers, including aging populations, rising chronic disease prevalence, and continued innovation in obesity, diabetes, and specialty therapeutics, continue to support the sector's long-term outlook.
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- Top Quant Strategy: Momentum
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Our Momentum strategy was the week's strongest quantitative style as investors continued rewarding companies with improving earnings expectations and positive price trends. Market leadership stayed concentrated among businesses with strong competitive positioning, resilient fundamentals and visible growth drivers, including names like Booking Holdings, Caterpillar, and CME Group.
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While momentum can experience periods of elevated volatility during market rotations, maintaining exposure to high-quality momentum names remains appropriate alongside ongoing valuation discipline.
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What To Look For Next Week
We look ahead to the economic reports, events, and earnings that may influence the week ahead. We also look ahead to the economic reports, events, and earnings that may influence the week ahead. From inflation and jobs data to corporate updates from key market players, this section keeps you informed on what's coming, and why it matters.
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- U.S. Job Openings (Tuesday, June 30): Tuesday brings the latest reading on U.S. job openings, one of the clearest gauges of labour market demand. The most recent data showed openings rising to 7.618 million, the highest since November 2024 and well above expectations, with strength concentrated in professional and business services. Healthy demand for workers supports household incomes and consumer spending, making this a useful signal for the strength of the broader economy and corporate earnings.
Sources: U.S. Bureau of Labor Statistics (June 25, 2026)
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- ISM Manufacturing PMI (Wednesday, July 1): Wednesday's ISM Manufacturing report offers a timely look at the health of the U.S. factory sector. The most recent reading rose to 54, the strongest expansion since May 2022, with faster growth in new orders and production pointing to improving momentum in manufacturing. A healthy factory sector tends to support industrial activity, employment, and corporate profits, which is why we watch this indicator closely for early signs of economic direction.
Source: Institute for Supply Management (June 25, 2026)-
- U.S. Unemployment Rate (Thursday, July 2): Thursday's employment report includes the U.S. unemployment rate, a key measure of overall labour market health. The most recent reading held steady at 4.3%, with total employment rising and the broader U-6 measure easing slightly, signs of a labour market that remains fundamentally stable. Steady employment underpins consumer spending and corporate profitability, making this one of the most important indicators for the health of equity markets.
Source: U.S. Bureau of Labor Statistics (June 25, 2026)
Sources: Bloomberg (June 25, 2026), U.S. Bureau of Labor Statistics (June 25, 2026), Institute for Supply Management (June 25, 2026).
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Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.