01/29/2026
Welcome to our January 2026 market update.
Major equity indices have delivered positive performance so far this month. The S&P 500 has advanced modestly, while the TSX Composite has shown stronger gains. International markets have also posted solid returns, reflecting improved global growth sentiment despite ongoing tariff discussions and geopolitical developments.
Key drivers include continued progress in AI, a healthy IPO environment, and a sharp rally in commodities. Gold has reached new record highs amid geopolitical tensions and a softer U.S. dollar, benefiting commodity-linked sectors while creating headwinds for certain equities. U.S. tariff proposals and concerns about China’s growth trajectory continue to introduce uncertainty.
Markets are now focused on the recent Federal Reserve interest rate decision and quarterly earnings from leading technology companies, which have contributed to some volatility.
From a technical standpoint, major indices remain in positive territory, though momentum has moderated and market breadth has narrowed. Expectations for AI-driven earnings growth remain a supportive factor.
Sector performance reflects a rotation toward cyclicals and commodities. Materials and Energy have led, followed by defensive areas such as Consumer Staples and Industrials. Technology has shown moderate gains, while Financials have lagged.
On inflation:
• In the U.S., December 2025 CPI rose 2.7% year-over-year, with core CPI at 2.6%.
• In Canada, December 2025 CPI increased 2.4% year-over-year, up from 2.2% in November (January 2026 data will be released in mid-February).
January has demonstrated market resilience amid uncertainties, including geopolitical risks, policy shifts, and inflation dynamics. A disciplined, long-term approach remains the most reliable strategy.
