A slightly different backdrop this week for How the Wave Broke, but global markets remains as fast-moving as ever.

Over the past fortnight, earnings season has high volume. Between spiraling artificial intelligence infrastructure spend, contrasting consumer signals, and geopolitical tailwinds in commodities, investors are working hard to shape the picture.

Let’s unpack how the wave broke:

1. The Big Tech Capex Conundrum: Vision vs. Free Cash Flow

The prevailing narrative across Silicon Valley right now is defined by aggressive capital allocation into AI infrastructure and public equity markets are beginning to penalize unbridled spending.

• Meta : Delivered solid top-line revenue growth of 26%, guiding toward record annual revenues of $73B–$76B. The core advertising cash engine is alive and kicking. However, the market’s attention fixated entirely on capital expenditures. Meta is guiding capex toward ~$140 billion annually, equivalent to 2x annual revenues. The central debate for investors: is this going to be a multi-billion-dollar boondoggle?

• Alphabet (Google) : Shares slid roughly 12% following missed estimates and renewed anxieties that conversational AI search interfaces may cannibalize its legacy, high-margin ad business.

  

• Microsoft : Delivered a clean beat on both top and bottom lines, anchored by relentless demand for Azure. Microsoft remains the notable outlier among mega-cap hyperscalers, continuing to generate positive free cash flow despite heightened capex cycles.

• Amazon : The equity pulled back around 7% post-print. While AWS expanded at an impressive ~39–40% annualized clip, softer-than-expected retail e-commerce growth weighed heavily on broader sentiment.

• Tesla : Reported largely flat revenues and deteriorating earnings per share. Heavy capital outlays continue to pour into autonomous computing clusters, AI development, and the Optimus humanoid robotics program. The recent Roadster showcase had little affect on the share price.

2. Digital Media & Entertainment: Monetizing the Base

• Netflix : Put forward a disciplined operational quarter, with revenues guiding to be up 13% and earnings per share advancing 47%. Operational leverage continues to improve as lower-priced, ad-supported tiers scale globally. While the stock remains down roughly 30% year-to-date with market participants debating long-term subscriber terminal velocity, Netflix has before navigated strategic pivots and proved consensus wrong.

  

3. The Real Economy: Consumer Spending & Cross-Border Velocity

Is the global consumer buckling or adapting? Recent prints present a nuanced, bifurcated picture:

• Payment Networks (Visa & Mastercard ): Posted double-digit expansion across payment volume and net revenues. Visa grew revenues by 13% and Mastercard by 14%, with Mastercard expanding EPS over 20%. Growth was driven by resilient domestic spending in the United States and high-margin cross-border travel volume. This strength stands in contrast to recent weakness reported by staple consumer giants like PepsiCo, highlighting that transaction volumes remain healthy even if unit basket volumes shift.

• Coca-Cola : Shares are up approximately 30% year-to-date, benefiting from defensive portfolio rotation into consumer staples alongside strong fundamental execution. Organic revenue climbed on the back of a 7% expansion in beverage concentrate sales, reinforcing the pricing power inherent in their legacy distribution moats.

4. Healthcare & GLP-1 Adoption

• Eli Lilly : Revenue surged 39%, accompanied by sharp earnings expansion driven by relentless prescription volume for Mounjaro and Zepbound. The demand trajectory for metabolic therapeutics remains exceptionally robust, sending shares up ~30% year-to-date.

• Novartis : Posted top-line expansion of 4%, but net profitability was impaired by a significant clinical asset impairment write-down following a failed pipeline trial.

5. Macro Backdrop: Energy Volatility and Sticky Inflation

• Energy as a Portfolio Buffer: As highlighted in our early September strategy note (“Long Pumpkins, Short Ice Cream”), we cannot predict geopolitical flashpoints, but portfolio volatility was very likely to remain elevated. TotalEnergies posted revenue growth of 40.6% on the back of Middle Eastern geopolitical tension. Up roughly 40% year-to-date, energy equities continue to prove their worth as a structural hedge.

• Inflation Stagnation: Consumer price index readings in the United States and the United Kingdom printed 0.1% above consensus expectations, remaining stubbornly above 3%. Canada also sits north of the 3% threshold, while Japan was the sole developed market tracking closer to central bank targets at approximately 2%. The final mile of global disinflation remains distinctly uneven.

Community & What’s Next at BREAKINGWATERS

• Book Club Discussion (Friday, November 6th): We are reading Brett Gardner’s Buffett’s Early Investments - an exceptional study blending corporate history with Warren Buffett’s early capital allocation framework. Join us for a live conversation with Brett.

• Webinar (Friday, November 13th): A deep dive into modern biotechnology with Mark Dainty and Paulina Suker of the Blue Box Precision Medicine Fund.

• Recent Post: If you missed it, make sure to read “Let Them Eat CAC”, examining the structural decoupling of France’s CAC 40 index from domestic political turbulence.

Thank you for tuning in / reading along, and enjoy the rest of your weekend.

Glossary of Financial Terms

• Capex (Capital Expenditures): Funds allocated by a company to acquire, upgrade, and maintain physical assets such as data centers, chips, factories, or real estate.

• ROI (Return on Investment): A profitability metric evaluating the net financial gain generated from an investment relative to its initial cost.

• EPS (Earnings Per Share): A company’s net profit divided by the total number of common shares outstanding, serving as an indicator of profitability.

• Hyperscaler: Large-scale cloud service and data providers (e.g., Microsoft Azure, Amazon AWS, Google Cloud) capable of providing massive computing infrastructure.

• Free Cash Flow (FCF): The operational cash a company retains after subtracting working capital needs and capital expenditures; key for funding dividends, buybacks, or debt retirement.

• Hedge: An investment position established to offset potential losses in companion holdings during market drawdowns or volatility spikes.

• Cross-Border Transactions: Payment processing that occurs when the merchant and consumer payment cards are registered in different countries, typically carrying higher processing margins.

• GLP-1 (Glucagon-Like Peptide-1): A class of therapeutic medications originally engineered for type 2 diabetes that have seen widespread adoption for clinical weight loss and metabolic care.

• Write-down / Impairment: An accounting reduction in the book value of an asset when its fair market value permanently drops below balance-sheet carrying value.

• Organic Growth: Revenue growth achieved via operational expansion and higher sales volume/pricing, excluding mergers, acquisitions, or foreign exchange currency fluctuations.

The Semiconductor Story: Timing is Everything

This week saw key updates from some of the heavyweights of the AI and semiconductor space.

ASML delivered a solid beat on earnings, driven by improved margins and the relentless drumbeat of AI demand. However, they slightly missed revenue estimates. For those familiar with ASML, this is a known quirk: due to the massive size of their systems, revenue is only booked upon delivery. If a shipment slips by a single day at quarter-end, revenue swings disproportionately relative to a typical company. Consequently, despite the strong underlying fundamentals, the stock is trading down 6% since.

TSMC, on the other hand, reported major growth with clean beats on both the top and bottom lines. Yet, just like ASML, the stock fell after the results.

Meanwhile, we await full results from Samsung, which has only provided pre-guidance so far, with their official earnings expected in the coming weeks.

Luxury’s China Problem

Outside of tech, LVMH caught our attention. The luxury conglomerate missed slightly on earnings and posted flat revenue growth. The culprit? Weaker-than-expected demand in China. For years, the Chinese consumer has been the engine of LVMH’s revenue and earnings growth. This slowdown is a notable red flag and something investors should monitor closely as a bellwether for the broader luxury sector.

Financials: A Mixed Bag of Treasuries and Trading

The banking sector delivered a highly mixed bag, heavily influenced by turbulence in the treasury market. Elevated inflation, rising rates, and volatility in fixed-income markets have pressured the fixed-income divisions of major banks.

However, there were bright spots. JPMorgan managed to guide higher on its net interest margin (NIM) outlook, anticipating that elevated inflation and higher rates will continue to support Net Interest Margins. This structural advantage allowed the stock to edge higher.

Goldman Sachs reported a massive, unexpected beat in its equities division. Yet, in a recurring theme for the week, the broader market malaise meant it wasn’t enough to lift the stock, which fell regardless of the strong fundamental performance. Similarly, BlackRock announced a staggering $200 billion in asset inflows, pushing their total AUM to $15 trillion.

The Macro Driver: Inflation Bites Back

Why are companies beating earnings estimates only to see their stock prices flatline or fall? The answer lies in the macroeconomic data.

U.S. inflation data was released this week, with CPI coming in at 3.7% year-over-year, running hotter than the 3.4% anticipated by analysts. Even stripping out energy, core inflation remains higher than the market, and the Federal Reserve, wants to see.

Source: Wall Street Journal

This hotter-than-expected print is the true driver of this week’s price action. It explains the rotation we are witnessing: tech and financial stocks are struggling to catch a bid despite strong earnings, while defensive names like Johnson & Johnson and UnitedHealth ticked updward. Investors are actively shifting into defensive positioning in response to the “higher for longer” interest rate reality.

Podcast Highlights: Masterclasses in Capital Allocation

Finally, if you haven’t already, check out our recent conversations on the podcast:

• The Future is Uncertain with Sean Peche: A masterclass in money management and career longevity. The feedback on this episode has been phenomenal, packed with actionable nuggets and insights for investors.

• Andrew Hollingworth: A fascinating look at pure business analysis. Andrew’s approach to finding great businesses without getting bogged down in extraneous analysis is refreshing, and his story about a crucial lesson learned from an Apple holding a decade ago is required listening for any investor - set to drop in the coming days.

That’s how the wave broke this week. Keep an eye out for The Coming Wave in the next couple of days. Have a great weekend.

📖 Glossary of Terms

• AUM (Assets Under Management): The total market value of the investments that a person or entity (like BlackRock) manages on behalf of clients.

• Core Inflation: A measure of inflation that excludes volatile items like food and energy prices, providing a clearer picture of underlying inflation trends.

• CPI (Consumer Price Index): A measure that examines the weighted average of prices of a basket of consumer goods and services. It is the primary indicator used to track inflation.

• Defensive Stocks: Shares in companies that provide consistent dividends and stable earnings regardless of the state of the overall stock market (e.g., healthcare, utilities, consumer staples like Johnson & Johnson).

• Fixed Income: Investments that pay a fixed schedule of interest or dividend payments, such as government or corporate bonds (Treasuries).

• Net Interest Margin (NIM): A profitability metric for banks, measuring the difference between the interest income generated by banks and the amount of interest paid out to their lenders (depositors). Higher rates generally improve NIM.

• Pre-guidance: Financial estimates provided by a company’s management prior to the official release of their full quarterly or annual earnings report.

• Treasuries: Debt obligations issued by the U.S. government. They are highly sensitive to interest rate changes and inflation expectations.

• YoY (Year-over-Year): A method of evaluating two or more measured events to compare the results of one time period with those of a comparable time period on an annualized basis.

We were keeping an eye on PepsiCo, Tesco, and Delta Air Lines - to gauge the strength of the consumer in both the US and the UK.

• PepsiCo: a mixed bag report with a negative tilt. While the company did manage to show overall revenue growth, the bulk of that was driven by international markets. Their core North American market is struggling, with revenues in some areas running flat to shrinking. This provides some insight into a US consumer that is feeling the pinch and actively withholding spend.

  

  Source: PepsiCo Q3 10Q Report

• Tesco: The UK grocer reported pretty good results, though top-line growth was modest at just a couple of percent. Operating profit grew at a faster clip, largely driven by a favorable sales mix. However, Tesco’s position in the mid-range of the grocery market makes it difficult to draw a definitive read on the broader UK consumer. It is hard to gauge exactly how much of their success is organic versus consumers “trading down” from higher-end supermarkets like Waitrose and Marks & Spencer. Overall, it is a positive story for Tesco, with no glaring negatives.

• Delta Air Lines: Delta reported a record breaking quarter for revenues but this did not fall to the bottom line as elevated fuel prices due to the Iran conflict ate away the potential profit. The airline also slashed its profit forecast going forward for the same reason.

Macro Developments: US Jobs and Australian Consumer Confidence

• US Jobs Report: The September jobs report came in drastically below expectations. The US economy added just 29,000 jobs last month, falling far short of estimates that hovered closer to 90,000.

  

  As the last jobs report before the US elections, this data has significant implications. On the positive side for markets, a cooling labor market reduces inflation fears and lessens the inclination for the Federal Reserve to hold rates higher for longer. However, the fundamental reality is that such a stark miss is not a great sign for the underlying economy.

• Australia in Focus: We have also been tracking the situation in Australia, where the macro picture is declining. The latest consumer confidence survey, taken across September, showed a considerable drop following the central bank’s decision to raise interest rates at the end of the month.

  

  Source: Westpac-Melbourne Institute Consumer Sentiment Index

  In fact, consumer sentiment has plummeted to its lowest level since the early 1990s. When paired with falling house prices in the region, it is clear that Australian consumers are feeling the strain, and their forward outlook is deteriorating.

The AI Boom Continues: TSMC and Samsung

While the consumer sectors show signs of fatigue, the AI growth story continues to have wind in its sails.

This week, semiconductor heavyweights TSMC and Samsung Electronics released preliminary pre-report guidance, and the revenue figures are nothing short of astonishing:

• TSMC: Preliminary revenues are up approximately 54% compared to the same period last year, driven entirely by insatiable AI demand.

• Samsung Electronics: The numbers here are even more staggering. Samsung’s operating profits have rocketed up roughly ninefold over the last quarter.

Both companies will report their full numbers next week, which will provide deeper insights into the sustainability and scale of this ongoing AI hardware supercycle.

Content Updates

• The full World for Sale and Odyssey conversations are up.

• Part one of my conversation with Sean Peche is available in the next 24 hours.

• Nike Deep Dive: Following up on last week’s note about Nike’s 80% decline over the last five years, I have published a dedicated piece examining the company’s faltering performance through the pandemic and beyond. Thank you to everyone who requested more detail on this please keep the feedback and comments coming.

Have a great weekend.

The week has come to an end.

Things that went down this week.

It was a pretty quiet week in terms of earnings. Not much to report on. Some things that jumped out to me this week were...

UK Housebuilders

UK housebuilders popped about 15% earlier in the week and that was driven by a change coming through in policy for buy to lead for first time buyers. So that’s trying to spur some activity in In the housing industry in the UK, which has been pretty stagnant for several years.

Source: UK Government Housing Statistics & Westminster White Papers on Housing Supply vs Demand

Companies themselves are pretty nice companies. Great balance sheets, well run, long established, but just a very, very...

They have a high beta to sentiment. So sentiment improves. They tend to follow more so. Sentiment declines. They tend to fall more so than the actual what’s going on. So they popped about 15%.

JAPAN

Elsewhere, Japan jumped, I noticed, about 5%, which ordinarily mightn’t be cause for reflection or looking at it. But this was of interest because most of the... Other markets and sectors fell during the week. So this was kind of an anomaly and stood out.

Source: google finance

The reasons were unclear. Tech was the sector that jumped most. The drivers behind it were unclear. I saw some reports that said it was.

Good earnings from AI companies in the US, but equally interest rates in Japan got up recently. Although the tech companies are doing well and the earnings are strong, those companies weren’t rewarded in the U.S. So it’s a bit strange.

Source: google finance

I’m not quite sure what’s happening. I think maybe they’re getting some fallout from so recently Korean stocks and Taiwanese stocks are doing very well, in particular chip stocks. So maybe some of those people invested in those. The first one, I’m not sure. But one to watch, and that’s Japan.

CARNIVAL CRUISES

So other things that jumped out, Carnival Cruises did very well, jumped about 15%. Their earnings report was very strong.

They raised their forward guidance, so they expect demand to remain strong. I think the interesting point here, I can’t tell you if Carnival is an investment or not or worthwhile, but what’s interesting to take away from this is that experiential... Investments, experiences still are getting a lot of demand and cruises in particular.

And I don’t think post-COVID is the only reason for that. You know, in the industry, people said, OK, you’ve been locked up. Now you want to have experiences. You want to go. You want to travel. You want to fly. You want to go on cruises. You want to do the shows. You want to whatever.

But that’s, you know, that time is now gone. We can do that. We’ve been able to do that for a long time. So I think it’s probably actually linked to the house builders in a way in that People are struggling, this middle layer is struggling to get on the housing ladder. They have disposable income, not enough maybe.

To get on a housing ladder, but enough to say, well, okay, I still have to live my life and I want... And, you know, this new world of technology and social media means people go to these places and they put it on their Instagrams and they spend a bit more money on that

than they would have, you know, 10 years ago, 15 years ago. I think that’s... That base level of demand is here to stay. Um... What else?

NIKE - JUST NOT DOING IT

Nike is reporting. I’m recording this on Thursday. So Nike haven’t yet reported, but Nike’s been a bit of a dog for the last five years.

During COVID, they came out with a strategy to be entirely digital online. They burned a lot of their relationships with their retail base. And that has deeply affected them. Other brands have come in, the Hokas and the Ons. And so they’ve lost a lot of luster. But then part of me questions, has it gone too far?

You know, they’re still an incredible brand. It’s still probably the go-to for many, for a lot of things. So something I’m going to look at, look into is, yeah, well, has this gone too far? Let’s see what the report is like tonight.

US <> China Meeting

And then the only other thing for this week was the Trump-Xi Jinping meeting.

And that was a bit of a damp squib. One commentator called it Diplotainment, which is quite funny. Yeah, nothing really came out of that. They’re going to open an AI dialogue, but what that means is not clear. So not much from that.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 23 May 2026.

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THE RUNDOWN

European markets trended higher this week as optimism grew regarding potential US-Iran peace talks and a de-escalation of Middle East tensions. The Euro Stoxx 50 led with a 2.9% gain, buoyed by a strong rotation into AI-related tech stocks like ASML and Nokia.

Germany’s DAX 40 rose 2.4%, supported by positive domestic business climate data and industrial strength, while the Swiss Market Exchange gained 2.0% due to solid luxury sector earnings, notably from Richemont.

The CAC 40 increased 1.6%, though it lagged slightly as concerns over high-end consumer demand and regional inflation persisted. Spain’s IBEX 35 rose 1.3%, trailing peers as broader economic uncertainty and energy price fluctuations weighed on the domestic outlook.

Overall, while geopolitical risks remain, markets benefited from a pullback in bond yields and hopes for a reopening of the Strait of Hormuz.

MOVERS AND SHAKERS

RISERS

• ASML Holding (ASML NA) manufactures chipmaking equipment and fell up to 7.1% due to new US export controls and geopolitical uncertainty regarding sales to China.

• Infineon Technologies (IFX GY) produces semiconductors and fell as part of a 1.6% drop in the DAX 40 amid regional geopolitical tensions and inflation fears.

• Ferrari (RACE IM) produces luxury performance cars and its stock dropped over 16% this month following suspended deliveries due to conflict in the Middle East.

FALLERS

• Munich Re (MUV2.DE) is a global reinsurer whose shares fell 3.06% following Q1 investment-related headwinds and market volatility impacting its fixed income portfolio.

• Eni (ENI.MI) is an integrated energy company that fell 2.92% amid general market movements and geopolitical tensions affecting global oil price stability.

• Ahold Delhaize (AD.AS) is a retail supermarket group that declined 2.60% due to concerns over inflation and falling consumer sentiment impacting purchasing power.

SECTORS

European markets surged this week, led by Technology (8.25%) as AI infrastructure momentum and Nokia’s new partnerships fueled gains. Real Estate (3.23%) and Financials (2.95%) rose as investors anticipated ECB monetary easing despite persistent inflation. Conversely, the Energy sector fell 1.37% as markets weighed the impact of the Middle East conflict on corporate margins, with pressure on TotalEnergies and Eni. While Industrials (2.06%) benefited from increased defense spending, consumer sectors remained resilient despite high energy prices. Overall, the STOXX Europe 600 climbed toward 625, testing highs not seen since the conflict began.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 23 May 2026.

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THE RUNDOWN

North American markets saw broad gains this past week, driven by cooling inflation fears and geopolitical optimism. The Russell 2000 led with a 3.4% rise as buyers defended support levels and smaller caps benefited from easing Treasury yields.

The Dow Jones Industrial rose 1.8%, reaching a record high as progress in U.S.-Iran peace negotiations lowered energy prices and boosted sentiment. The Nasdaq 100 gained 1.7%, supported by a rebound in semiconductor stocks like Qualcomm ahead of Nvidia’s earnings.

The S&P 500 climbed 1.0%, recording its eighth consecutive weekly gain behind strong momentum in artificial intelligence-linked technology. In Canada, the S&P/TSX Composite rose 2.2%, bolstered by its significant exposure to the energy sector, which saw gains despite volatile crude prices.

Overall, the easing of the 10-year Treasury yield provided a necessary tailwind for valuations across these diverse benchmarks.

MOVERS AND SHAKERS

RISERS

• Dell Technologies (DELL US) provides AI servers and hardware, rising 24.01% due to strong AI infrastructure demand and positive analyst sentiment ahead of its upcoming earnings report.

• HP Inc. (HPQ US) manufactures personal computers and printers, rising 20.65% as strong quarterly results from Lenovo boosted investor optimism for a global PC market recovery.

• Skyworks Solutions (SWKS US) produces wireless semiconductors, rising 17.16% amid a broad semiconductor sector rally and optimism regarding mobile RF content gains and Android design wins.

FALLERS

• Intuit (INTU) provides financial software and fell -20.64% after reporting fiscal earnings and announcing a workforce reduction to focus on artificial intelligence.

• Walmart (WMT) operates retail stores and declined -9.80% after issuing cautious guidance and citing high fuel costs as a drag on future earnings.

• EchoStar (SATS) offers satellite and wireless services and dropped -8.98% due to ongoing subscriber losses and broader sector weakness affecting communications stocks.

SECTORS

Technology gained 3.46% as AI-driven demand and hardware surged, while Utilities rose 3.21% on defensive positioning. Consumer Discretionary climbed 2.46% behind digital transformation trends. Conversely, Energy fell 1.80% as a surprise EIA report and record U.S. production outweighed geopolitical tensions in the Strait of Hormuz. Communication Services dropped 1.30% due to advertising exposure risks and high concentration. Consumer Staples declined 1.28% as investors favored growth over defensive stability. Health Care rose 2.86%, benefiting from a rotation into defensive areas as the economy showed signs of slowing. Real Estate added 1.85% amid shifting interest rate expectations.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 16 May 2026.

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THE RUNDOWN

European markets faced a challenging week, with most major indices closing in the red. The DAX 40 dropped 1.6%, while the CAC 40 fell 1.3%, primarily due to stalled progress in the Iran conflict and heightened inflation fears.

These geopolitical tensions and risk of military escalation also weighed on the Euro Stoxx 50, which declined 1.1%. Similarly, Spain’s IBEX 35 fell 1.3%, reflecting broader regional sentiment.

In contrast, the Swiss Market Exchange rose 0.9%, benefiting from its more defensive composition as investors sought stability amidst the volatility affecting industrial and luxury-heavy neighbors.

While the German and French markets were pressured by their heavy exposure to energy-dependent manufacturing and global trade uncertainties, the Swiss market’s resilience highlights the divergence in performance based on sector concentration and risk appetite during this period of geopolitical instability.

MOVERS AND SHAKERS

RISERS

• Infineon Technologies is a semiconductor manufacturer that rose 5.50% following strong tech sector gains and investor optimism regarding artificial intelligence and power chip demand.

• EssilorLuxottica is a global eyewear company that climbed 3.74% as markets responded positively to its growing smart glasses segment despite recent broader market volatility.

• Adidas is a sportswear designer and retailer that gained 2.82% after reporting strong quarterly sales and earnings that beat analyst estimates.

FALLERS

• Automaker BMW fell 8.03% due to a slump in China sales, high production costs, and a costly recall involving 1.5 million vehicles' braking systems.

• Defense contractor Rheinmetall dropped 5.53% after missing first-quarter revenue and profit expectations despite a growing order backlog driven by global security tensions.

• Reinsurer Munich Re declined 5.27% after deliberately reducing premium volumes during renewals and facing downward price pressure in the property catastrophe business.

SECTORS

Utilities fell 4.50% and Industrials dropped 3.06% this week as higher borrowing costs weighed on capital-heavy industries. Basic Resources also slid 2.98% amid concerns over slowing global manufacturing demand. In contrast, Food & Beverage climbed 1.74% as a defensive play, while Health Care rose 0.63% and Technology gained 0.37% on selective resilience. These shifts reflect a defensive rotation as investors navigate economic uncertainty. Energy saw a marginal 0.23% rise, cushioned by steady oil prices.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 16 May 2026.

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THE RUNDOWN

U.S. markets broadly pulled back this week, with the S&P 500 falling -0.1% and the Dow Jones Industrial dropping -0.4%.

Investor sentiment was dampened by uncertainty over Federal Reserve interest rate policy and rising 10-year Treasury yields, which hit a one-year high. This particularly pressured the Nasdaq 100, down -0.7%, as high-flying chip and AI stocks like Nvidia and Intel faced profit-taking and caution ahead of earnings.

Small-cap stocks saw the steepest decline, with the Russell 2000 falling -2.7%, reflecting their sensitivity to macroeconomic signals and interest rate volatility.

Canada’s S&P/TSX Composite fell -0.9%, weighed down by its significant exposure to the energy and materials sectors. While crude oil prices surged over 3%, metal prices for copper, gold, and silver backtracked significantly, hurting mining firms.

Broad selling pressure across most sectors suggests a cautious shift toward defensive strategies as markets navigate these inflationary concerns.

MOVERS AND SHAKERS

RISERS

• Cisco, a software and networking giant, surged 19.74% after reporting strong third-quarter results and raising its annual AI infrastructure order forecast to $9 billion.

• Palo Alto Networks, a cybersecurity firm, climbed 13.65% following strong results from peer Fortinet and bullish analyst price target increases citing robust platform momentum.

• Humana, a health insurance provider, rose 11.25% after reporting a first-quarter medical loss ratio that beat expectations and improved Medicare Advantage rate outlooks.

FALLERS

• Chipmaker Intel fell 15.97% due to concerns over losing server market share to competitors and significant operating losses within its foundry division.

• Semiconductor designer Qualcomm dropped 15.17% following a weak forecast driven by a global memory shortage and market share losses at Apple.

• Lithium producer Albemarle Corporation slid 14.10% as investors reacted to an $820 million charge from closing an Australian refinery and ongoing lithium price volatility.

SECTORS

Energy gained 3.97% this week as heightened geopolitical tensions drove oil prices higher. Investors simultaneously shifted toward defensive positions, lifting Consumer Staples by 1.52% and Health Care by 1.44%. In contrast, Materials fell 3.75% and Real Estate dropped 3.01% as persistent inflation fears and rising Treasury yields pressured rate-sensitive sectors. Utilities declined 2.81% due to increased borrowing costs. Technology slipped 0.91% as growth-stock enthusiasm moderated, while Consumer Discretionary fell 2.38% on signs of slowing consumer demand.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 9 May 2026.

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THE RUNDOWN

European markets saw mixed results this week amid geopolitical tensions and contrasting economic data. The IBEX Spain led gains, rising 3.07% as consumer services and construction sectors rallied. The Euro Stoxx 50 increased 2.57%, supported by strong performances in industrials and financials despite energy sector weakness.

Germany’s DAX 40 rose 1.45% as markets anticipated growth under new leadership and potential U.S. auto tariff relief, though gains were tempered by late-week Middle East hostilities and a 0.2% YoY GDP contraction.

Conversely, the CAC 40 saw more modest growth of 1.71%, facing pressure from its heavy exposure to luxury and software sectors, which struggled as U.S.-Iran tensions flared toward the weekend.

Overall, while hopes for interest rate cuts provided a tailwind, escalating military hostilities near the Strait of Hormuz triggered a late-week retreat across major indices.

MOVERS AND SHAKERS

RISERS

• ASML Holding is a semiconductor equipment manufacturer that rose 11.12% after raising its annual sales guidance due to strong demand for AI chip-making tools.

• UniCredit is a pan-European commercial bank that climbed 10.05% following record quarterly profits and an upgraded net profit ambition for the 2026 fiscal year.

• Infineon Technologies is a global semiconductor manufacturer that gained 8.54% after lifting its full-year revenue and margin forecasts amid a strengthening boom in AI.

FALLERS

• Rheinmetall is a defense contractor that fell 12.23% after reporting a softer outlook for profit margin and free cash flow that missed analyst expectations.

• Wolters Kluwer is a professional information services provider that dropped 10.19% due to investor concerns regarding competition from artificial intelligence and potential customer churn.

• Deutsche Börse is a stock exchange operator that fell 7.22% following an antitrust investigation by the European Commission and a downgrade citing cyclical headwinds.

SECTORS

European sectors saw varied results this week. Basic Resources rose 4.72% and Technology gained 7.00% on strong corporate earnings and AI demand. Consumer Products climbed 4.33% as luxury markets rallied. Conversely, Energy fell 4.27% and Utilities dropped 1.80% as volatile oil prices and geopolitical tensions in the Strait of Hormuz weighed on sentiment. Health Care also slipped 0.94%, trailing as investors rotated into cyclical sectors like Financials, which rose 2.43% amid shifting interest rate expectations. Despite late-week missile fire between the US and Iran, the STOXX 50 ended the week up 1.5%.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 9 May 2026.

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THE RUNDOWN

Last week, the Nasdaq 100 led the markets with a 5.7% gain, driven by its heavy concentration in the outperforming technology sector.

The S&P 500 followed with a 2.8% increase, as large-cap tech leaders exerted significant influence on the index’s market-cap-weighted value. The Russell 2000 rose 2.3%, reflecting positive sentiment in the domestic U.S. economy, where small-cap companies derive most of their revenue.

The Dow Jones Industrial Average gained 1.4%, showing steady performance from its 30 blue-chip members despite lagging behind high-growth tech indices. Meanwhile, the S&P/TSX Composite rose 1.3%, supported by its broad exposure to the Canadian market.

Collectively, these results indicate a week characterized by high demand for innovation and growth stocks, while domestic and defensive sectors provided more moderate, stable returns.

MOVERS AND SHAKERS

RISERS

• • Akamai Technologies provides cloud and security services and rose 39.64% after reporting a $1.8B AI infrastructure deal with Anthropic and strong Q1 earnings results.

• Datadog is a cloud monitoring platform that climbed 36.45% following a record $1.01B revenue quarter and broad-based acceleration across AI and non-AI customer segments.

• Advanced Micro Devices is a semiconductor company that gained 33.28% after reporting blowout Q1 earnings and issuing an upbeat revenue forecast driven by AI demand.

FALLERS

• CDW Corporation provides IT solutions and fell 22.55% after reporting Q1 margin compression and missing operating income expectations despite beating revenue estimates.

• Arista Networks is a networking equipment company that dropped 17.87% after warning that component supply constraints would impact future revenue growth and gross margins.

• APA Corporation is an energy company that fell 15.37% as investor concerns over future guidance overshadowed strong Q1 earnings and revenue beats.

SECTORS

Technology led weekly gains at 8.31%, fueled by robust earnings and continued AI investment momentum. Consumer Discretionary rose 2.11% as e-commerce trends supported growth, while Industrials gained 1.30% due to historical early-cycle outperformance. Conversely, Energy fell 6.21% as it reversed previous gains despite geopolitical tensions in the Strait of Hormuz. Utilities and Financials dropped 3.56% and 0.66% respectively, with the latter facing pressure from quantitative tightening. Real Estate climbed 0.75% as investors sought stability, while Consumer Staples edged up 0.77%, benefiting from its defensive nature during market volatility.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 2 May 2026.

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THE RUNDOWN

North American markets showed positive performance this week.

The Nasdaq 100 rose 1.5% and the S&P 500 gained 0.8%, fueled by strong earnings from tech giants like Alphabet and Amazon, which offset concerns over rising capital expenditure and inflation.

The Dow Jones Industrial climbed 0.7%, led by blue-chip gainers like Merck and Apple. The Russell 2000 rose 0.9% as investors weighed small-cap growth potential against hawkish Federal Reserve signals.

In Canada, the S&P/TSX Composite saw a modest 0.2% increase. The Canadian market benefited from its heavy exposure to the energy sector, which was bolstered by rising crude oil prices due to geopolitical tensions in the Middle East. However, overall gains were tempered by broader economic uncertainty and stalling peace talks, which put downward pressure on equities despite the strength in energy and financial stocks.

MOVERS AND SHAKERS

RISERS

• NXP Semiconductors is a semiconductor manufacturer that rose 24.64% after reporting a Q1 earnings beat and raising guidance due to AI and automotive demand.

• Centene Corporation is a managed healthcare company that rose 22.62% following a strong Q1 earnings report, raised profit forecasts, and improved Medicaid margin outlooks.

• Seagate Technology is a data storage provider that rose 22.00% as AI-driven data center demand led to a significant quarterly earnings and revenue beat.

FALLERS

• Builders FirstSource is a building materials supplier that fell 15.75% after reporting weak earnings and a 10% decline in net sales in Q1 2026.

• Pentair is a water technology company that dropped 14.27% after cutting its full-year revenue forecast due to weakness in the U.S. residential markets.

• Teradyne manufactures semiconductor test products and fell 14.07% after providing weak guidance and noting uncertainties regarding international trade policies and tariffs.

SECTORS

Energy led gains with a 3.66% weekly rise as Middle East tensions and risks to the Strait of Hormuz kept oil prices elevated. Consumer Staples climbed 2.22% as investors favored defensive stability amid geopolitical uncertainty. Real Estate rose 1.91%, benefiting from a stabilizing base despite broader rate concerns. Technology gained 0.81%, supported by robust AI infrastructure demand and strong corporate earnings. Conversely, Materials fell 0.83%, weighed down by inflationary pressures and input cost concerns. Financials saw a modest 0.21% increase as the sector navigated a divided Federal Reserve and shifting interest rate expectations.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 2 May 2026.

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THE RUNDOWN

European markets showed mixed performance this past week.

The DAX 40 rose 0.87%, bolstered by its high concentration of industrial and export-oriented firms benefiting from global trade. Spain's IBEX 35 gained 0.50% as its heavy weighting in the banking and energy sectors provided a hedge against broader volatility; notably, the Spanish energy sector surged 7.2% recently.

The Euro Stoxx 50 saw a modest 0.36% increase, reflecting balanced sentiment across blue-chip eurozone leaders.

Conversely, the CAC 40 fell 0.33%. Despite strong earnings from luxury giants like Hermès, the French index was pressured by rising inflation concerns and geopolitical tensions in the Middle East, which historically impact its highly international constituents.

Investors remain focused on central bank policy as both the ECB and BoE recently held rates steady amid energy shock warnings.

MOVERS AND SHAKERS

RISERS

• Adidas is a sportswear giant that rose 6.97% after reporting stronger than expected first-quarter operating profit and robust double-digit revenue growth.

• Infineon Technologies is a semiconductor manufacturer that gained 6.59% following robust quarterly results and increased optimism within the broader chip sector.

• Deutsche Post is a global logistics group that climbed 5.84% after crushing analyst earnings expectations and demonstrating improved operational efficiency.

FALLERS

• Munich Re is a global reinsurance company that fell 5.55% after reporting worse-than-expected quarterly profits caused by significant claims from natural disasters like hurricanes.

• LVMH Moët Hennessy Louis Vuitton is a luxury goods conglomerate that dropped 3.43% due to slowing global demand and geopolitical instability impacting Middle Eastern sales.

• Inditex is a major fashion retailer that fell 2.95% as part of a broader market downturn affecting consumer discretionary stocks amidst global economic uncertainty.

SECTORS

The week saw significant sector divergence driven by geopolitical and economic pressures. The energy sector rose 2.46% as supply fears intensified due to the closing of the Strait of Hormuz. Telecommunications led gains at 3.59% following reports of potential industry consolidation. Conversely, retail plummeted 2.66% and consumer products fell 2.19% as inflationary concerns and high interest rates dampened spending. Technology rose 0.85% supported by resilient corporate earnings, while health care slipped 0.51% as investors shifted toward cyclical assets. Overall, market sentiment remains cautious amid ongoing Middle East conflict and mixed corporate reporting.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 25 Apr 2026.

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THE RUNDOWN

European markets faced significant headwinds this week, primarily driven by escalating geopolitical tensions in the Middle East and a blockade of the Strait of Hormuz.

The IBEX Spain led the decline, falling 3.12% as soaring oil prices and regional instability pressured its energy-sensitive and financial-heavy composition. France’s CAC 40 dropped 2.08%, weighed down by heavy losses in the healthcare and industrial sectors despite resilient luxury performance.

The DAX 40 lost 1.18%, marking five consecutive sessions of declines as aerospace and defense stocks like Rheinmetall slipped, although gains in technology leaders like SAP provided some cushion. Similarly, the Euro Stoxx 50 fell 1.66%, reflecting broader Eurozone caution and the impact of rising yields on blue-chip valuations. Investors remained in a holding pattern as high energy costs and uncertainty regarding Iran-US peace negotiations continue to overshadow corporate earnings.

MOVERS AND SHAKERS

RISERS

• Infineon Technologies provides semiconductor solutions and rose 12.81% this week, it’s second week as the highest riser in Europe due to general market optimism and strong demand for AI and automotive power technologies.

• Siemens Energy offers energy technology across the value chain and climbed 11.12% following a record order backlog and strong quarterly revenue growth.

• L’Oréal is a global beauty and cosmetics leader that gained 7.55% as positive financial performance and market leadership in the beauty sector boosted sentiment.”ond week in a row, up 13.91% following strong global demand for automotive and power electronics chips.

FALLERS

• Safran is an aerospace and defense group that fell 10.89% as supply chain bottlenecks and a slowing aviation sector weighed on its long-term outlook.

• Rheinmetall is a major defense contractor that dropped 10.61% following reports of potential peace negotiations between Ukraine and Russia, cooling sector-wide demand expectations.

• EssilorLuxottica is a global eyewear manufacturer that slipped 10.07% due to lingering investor doubts regarding its demanding growth targets and performance in smart glasses.

SECTORS

The Energy sector surged 4.04% as escalating Middle East tensions drove crude oil prices higher. Utilities and Technology also gained 1.18% and 1.12% respectively, supported by infrastructure demand and AI-driven growth. Conversely, Health Care fell 4.17% and Financials dropped 3.86%. Retail and industrials declined 3.45% and 2.96% as persistent inflation fears and higher fuel costs impacted Consumer Discretionary spending and manufacturing margins. Mixed economic reports on retail sales and manufacturing contributed to broader volatility across these sensitive sectors.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 25 Apr 2026.

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THE RUNDOWN

U.S. markets reached record highs this week, driven by significant gains in the technology sector and renewed optimism for U.S.-Iran peace negotiations. The Nasdaq 100 outperformed other indices with a 2.7% increase, propelled by strong performances from semiconductor giants like Intel and AMD.

The S&P 500 rose 0.8% as it benefited from its heavy weight in information technology, which remains a primary driver of market growth. Conversely, the Dow Jones Industrial Average fell 0.4%, as its price-weighted structure was more sensitive to fluctuations in established blue-chip components.

The Russell 2000 also saw a slight decline of 0.2%, reflecting more cautious sentiment toward small-cap stocks. In Canada, the S&P/TSX Composite dropped 1.3% as ongoing tensions between the U.S. and Iran weighed on investor sentiment, despite its significant exposure to the energy sector which saw some price support.

MOVERS & SHAKERS

RISERS

• Advanced Micro Devices is a semiconductor company that rose 26.50% following broader chip sector gains and increased confidence in CPU demand for AI inference.

• Intel is a semiconductor manufacturer that climbed 25.68% after reporting better than expected first quarter earnings and raising its revenue guidance due to AI demand.

• United Rentals is an equipment rental firm that gained 19.96% after posting record first quarter revenue and increasing its full year financial outlook.

FALLERS

• Charter Communications provides cable and broadband services and fell 26.38% after missing Q1 earnings expectations and reporting a decline in internet subscribers.

• Tractor Supply is a rural lifestyle retailer that dropped 18.05% following a Q1 earnings miss and weak same-store sales growth.

• Lululemon Athletica designs athletic apparel and fell 13.79% after naming a new CEO and facing concerns over slowing North American sales and margin pressure.

  SECTORS

U.S. sectors saw mixed performance this week. Technology led gains at 3.66% as high confidence in AI demand and stellar earnings from companies like Intel boosted the chip sector. Energy rose 3.27% as geopolitical tension in the Middle East drove oil prices higher. Conversely, Communication Services fell 2.70% due to concerns over high AI capital expenditures. Financials dropped 2.30% as investors rotated toward value and defensive areas. Consumer Staples gained 1.02% and Utilities rose 0.94% as investors sought stability amid market volatility and economic uncertainty.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 18 Apr 2026.

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THE RUNDOWN

The European equity markets closed the week with strong gains, primarily driven by the reopening of the Strait of Hormuz, which eased energy supply concerns and stagflation fears.

The DAX 40 led the region with a 4.04% weekly rise, bolstered by Germany’s export-oriented economy and significant fiscal spending in infrastructure and defense.

The Euro Stoxx 50 climbed 2.59% as banking and industrial giants rallied on improved credit outlooks and lower power prices.

Spain's IBEX rose 2.56%, while the CAC 40 increased 2.30%. The French index benefited from its high concentration of luxury and aerospace leaders like LVMH and Airbus, which gained in a lower-risk environment despite a decline in TotalEnergies due to plunging oil prices.

Overall, sentiment was further supported by potential progress in U.S.–Iran negotiations and expectations of ECB monetary policy easing.

MOVERS AND SHAKERS

RISERS

• Infineon Technologies is a German semiconductor manufacturer that rose 13.91% following strong global demand for automotive and power electronics chips.

• Wolters Kluwer provides professional information software and rose 12.28% due to positive market sentiment regarding its AI-integrated legal and healthcare solutions.

• Adyen is a Dutch payment processing company that climbed 10.37% after reporting significant growth in processed transaction volumes across its unified commerce platform.

FALLERS

• Eni is an Italian oil and gas company that fell 9.37% as broader energy sector volatility and market uncertainty pressured major industry players.

• TotalEnergies is a French multi-energy company that declined 8.27% due to significant production losses in the Middle East and halted investments in conflict-affected regions.

• BASF is a leading global chemical producer that dropped 3.44% following reports of major operational losses at its Ludwigshafen site and continued restructuring efforts.

SECTORS

European sectors rallied for the most part this week, led by Industrials (4.13%) as the Strait of Hormuz reopened following a 10-day ceasefire, easing supply chain fears. Technology (3.71%) and Banks (3.69%) gained on the improved outlook, solid earnings and cooling inflation expectations as swap rates fell. Conversely, the Energy sector tumbled -5.73% as Brent crude dropped 10% to $88.8 on the news of restored oil flows. Utilities also dipped -2.74% amid shifting funding costs.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 18 Apr 2026.

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Major U.S. indices recorded gains this week as investors showed resilience ahead of key Federal Reserve announcements and driven by the reopening of the Strait of Hormuz, which eased energy supply concerns and stagflation fears.

The technology-heavy Nasdaq 100 led the advance with a 5.1% increase, bolstered by its 62.48% concentration in the technology sector and strong performance from mega-cap innovators.

The S&P 500 rose 3.5%, supported by stable economic indicators and robust retail sales data. The blue-chip Dow Jones Industrial Average climbed 2.5%, benefiting from its composition of well-established companies across diverse industries like financials and industrials.

Meanwhile, the Russell 2000 gained 4.0% as sentiment improved for small-cap domestic equities. In Canada, the S&P/TSX Composite saw a more modest rise of 1.4%; while it benefits from significant exposure to the energy and materials sectors, its growth trailed the aggressive tech-led rally seen in U.S. markets.

Overall, positive corporate earnings and stabilized bond yields continue to underpin investor confidence across these global benchmarks.

MOVERS & SHAKERS

RISERS

• Robinhood Markets is a financial services platform that rose 26.62% following news that the SEC will end day-trading limits for retail investors.

• Coinbase is a cryptocurrency brokerage that climbed 18.22% as improved market conditions and digital asset volatility drove higher transaction revenue and trading volumes.

• ON Semiconductor provides intelligent power and sensing solutions and gained 16.88% amid strong demand for AI data center and electric vehicle power technologies.

FALLERS

• LyondellBasell is a chemical company that fell 12.24% following a sharp dividend reset and cooling geopolitical premiums after a U.S.-Iran ceasefire.

• Dow Inc. is a materials science firm that dropped 11.24% as plunging oil prices and the reopening of the Strait of Hormuz unwound conflict-driven gains.

• APA Corporation explores and produces oil and gas, falling 9.50% after the U.S.-Iran ceasefire removed the energy market’s short-term conflict premium.

  SECTORS

Most sectors rallied as a U.S.-Iran ceasefire and the reopening of the Strait of Hormuz eased geopolitical tensions. Technology surged 6.00% on AI enthusiasm and strong earnings upgrades. Consumer Discretionary rose 5.70% and Industrials gained 0.45% as lower fuel costs and resilient consumer spending supported cyclicals. Conversely, Energy fell 3.66% as oil prices dropped roughly 9% with the removal of the risk premium. Materials and Utilities saw modest declines of 0.59% and 0.50% respectively, while Financials gained 1.49% following upbeat reports from major U.S. banks. Real Estate added 3.39% as bond yields stabilized.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes.

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THE RUNDOWN

European markets rallied this week, driven by optimism over a potential ceasefire in the Middle East, which fueled a relief rally across major indices.

The Euro Stoxx 50 led gains at 5.20%, supported by its broad blue-chip representation of supersector leaders.

France’s CAC 40 rose 4.44%, benefiting from its high concentration in luxury goods and industrials, which often react positively to improved global sentiment.

Spain’s IBEX 35 climbed 4.36% as its heavy banking exposure capitalized on the optimistic economic outlook and robust earnings.

Germany’s DAX 40 increased by 3.85%, bolstered by its strong industrial and technology base.

While the geopolitical news provided a significant tailwind, energy stocks faced pressure as oil prices plunged following the truce reports. Overall, high liquidity and a shift toward risk-on sentiment characterized the week’s performance across these key benchmarks.

MOVERS AND SHAKERS

RISERS

• ASML Holding manufactures photolithography machines for chips and rose 14.02% this week due to strong demand for advanced semiconductor manufacturing equipment and AI growth.

• Siemens Energy provides energy technology and services and climbed 13.19% following positive sentiment regarding grid stability solutions and increased renewable energy project commitments.

• Infineon Technologies designs power semiconductors and gained 11.92% as the company benefits from recovering automotive demand and expansion in power management for data centers.

FALLERS

• Rheinmetall is a German defense manufacturer that fell 4.39% as a potential Ukraine ceasefire and peace talks reduced the demand for arms and artillery.

• SAP is a European software firm that dropped 4.02% due to concerns regarding artificial intelligence disruption and slowing growth in its cloud computing backlog.

• Eni is an integrated Italian energy company that declined 3.78% following a plunge in crude oil prices triggered by a U.S.-Iran ceasefire agreement.

SECTORS

European equities surged this week as a two-week ceasefire and the reopening of the Strait of Hormuz provided significant relief. Technology and Retail led gains, rising 8.66% and 7.98% respectively, as easing geopolitical tensions boosted growth expectations. Financials jumped 6.95% as banking stocks like UniCredit benefited from improved risk appetite. Industrials rose 6.37%, aided by lower energy costs for manufacturing giants. Conversely, Energy was the sole decliner, falling 0.85% as Brent crude plunged 15% following the truce. Utilities and Health Care saw more modest gains of 1.26% and 2.40% as investors rotated into cyclical sectors.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, Google Finance, 11 Apr 2026.

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US equity benchmarks traded up this week as investors balanced geopolitical developments with inflation data. The Nasdaq 100 led gains, rising 3.8% on an advance in information technology and record demand for AI-focused hardware.

The S&P 500 climbed 3.1%, supported by technology strength. Small-cap stocks in the Russell 2000 rose 3.5%, benefiting from a temporary U.S.-Iran ceasefire that aided domestic-focused firms.

Conversely, the Dow Jones Industrial Average saw a more modest 2.7% increase.

In Canada, the S&P/TSX Composite rose 1.5% for the week. While Canada’s market is heavily weighted toward energy and finance, its gains were slightly more tempered than U.S. peers as investors reacted to a 21% monthly surge in the gasoline index despite overall inflation matching expectations.

Markets remain headline-driven, focused on Middle East negotiations and stabilizing labour data.

MOVERS & SHAKERS

RISERS

• Intel is a semiconductor manufacturer that rose 22.84% following an eight-session winning streak driven by strong server CPU demand and new AI chip partnerships.

• Coherent Corp. provides lasers and optical materials (check out our recent EiC with Mikhail Zverev) and climbed 21.44% after unveiling advances in silicon carbide technology and reporting strong fiscal 2026 earnings.

• Lam Research produces semiconductor manufacturing equipment and gained 19.49% due to record Q2 fiscal 2026 results and unprecedented demand visibility for AI-focused hardware.

FALLERS

• Akamai Technologies is a cloud and cybersecurity company that fell 20.29% as increased competition in cloud infrastructure pressured growth and margin expectations.

• ServiceNow provides enterprise cloud solutions and dropped 18.96% following a UBS downgrade citing weaker demand for non-AI software and shifting corporate budgets.

• Axon Enterprise manufactures public safety technology and declined 16.25% due to legal uncertainty regarding its new headquarters and a wave of analyst price cuts.

  SECTORS

Major U.S. sectors rallied this week following a two-week ceasefire agreement between the U.S. and Iran. The Information Technology sector rose 4.27% as record revenues from Taiwan Semiconductor and strong AI chip demand boosted semiconductors. Industrials gained 4.20% due to firmer underlying demand for equipment. Conversely, Energy fell 4.59% as crude oil prices dropped 13% for the week following the de-escalation of conflict. Consumer Staples declined 0.35% as investors rotated into cyclical sectors, while Financials added 1.78% ahead of the first-quarter earnings season. Real Estate climbed 2.54% as Treasury yields retreated from recent highs.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes. Past performance is not an indicator of future performance. Sources: Fiscal.ai, 5 Apr 2026.

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THE RUNDOWN

The past week saw mixed performance across North American indices as markets navigated geopolitical tensions and shifting economic narratives.

The Nasdaq Composite led gains at 5.2%, bolstered by a late-week rebound in technology stocks despite a cooling of the AI spending narrative that previously drove mega-caps.

The S&P 500 rose 3.8%, though it faced pressure from its heavy 34.3% concentration in Information Technology.

The Russell 2000 increased 4.8%, benefiting from its domestic focus as small-cap companies remain sensitive to U.S. consumer spending. The Dow Jones Industrial Average grew 2.8%, showing more resilience due to its blue-chip composition.

In Canada, the S&P/TSX Composite rose 3.7%, supported by its significant exposure to the energy and finance sectors, which saw positive movement amid surging oil prices and a trend of diversification away from American assets.

However, gains across all markets were tempered late in the week by renewed geopolitical uncertainty regarding Iran.

MOVERS & SHAKERS

RISERS

• Lumentum (discussed recently in our EiC with Mikhail Zverev, Amati Global Innovation Fund) manufactures optical and photonic products and rose 26.28% this week following news of a new manufacturing facility to produce advanced lasers for AI.

• Ciena is a networking systems and software provider that climbed 22.67% due to strong demand for high-speed connectivity and its leadership in coherent optics (optics also discussed in our session with Mikhail).

• Sandisk designs and manufactures flash memory products and gained 22.55% as the company benefits from rapid growth and construction in the data center market.

FALLERS

• Nike, Inc. is an athletic footwear and apparel designer that fell 13.76% after disappointing Q4 guidance and a lowered revenue outlook for the fiscal year.

• McCormick & Company is a global spice and flavor manufacturer that dropped 9.07% as analysts lowered price targets following broader concerns about consumer spending.

• Constellation Energy is a leading carbon-free energy producer that declined 8.64% due to regulatory uncertainty and a broader downturn in the utility sector.

  SECTORS

Technology (6.66%) and Industrials (4.57%) led the rebound as hopes for Middle East de-escalation fueled a relief rally and strong ISM manufacturing data (52.7) signaled economic resilience. Real Estate (3.48%) and Communications (3.46%) also gained as the 10-year Treasury yield retreated to 4.30%. Conversely, Energy fell 4.37% despite high oil prices, as markets priced in a potential end to the Iran crisis and a return to lower futures prices. Consumer Staples remained nearly flat (0.01%) as investors shifted from defensive positions back into growth sectors following five weeks of declines.

Note: None of the material or content contained herein constitutes investment advice. It is solely for educational and informational purposes.

THE AUDIO BRIEF

THE RUNDOWN

European markets saw gains this past week despite late-session volatility. The Euro Stoxx 50 rose 2.73%, while the DAX 40 gained 2.68%, supported by a recovery in industrial technology and defense sectors, even as a 3.3% slip in Deutsche Telekom weighed on Germany’s index.

The IBEX Spain led with a 3.46% increase, buoyed by a strong banking sector that continues to benefit from interest rate normalization.

The CAC 40 increased 2.44%, driven by a resilient luxury sector and global demand for its aerospace components.

However, gains were tempered mid-week by geopolitical tensions in the Middle East and concerns over oil maritime traffic in the Strait of Hormuz, which triggered a pivot away from speculative tech assets and pressured financial institutions like BNP Paribas and UniCredit. Broad institutional buying and reduced geopolitical risk premiums earlier in the week provided the primary foundation for these positive returns.

MOVERS AND SHAKERS

RISERS

• Rheinmetall is a German defense manufacturer that rose 11.42% due to record military spending in Europe and a growing ammunition and combat vehicle order backlog.

• Argenx is a global immunology company that gained 5.58% following strong product sales for its autoimmune treatments and positive updates to its drug pipeline.

• Siemens Energy is an energy technology provider that climbed 5.42% after announcing a $1 billion investment to expand power grid infrastructure and manufacturing capacity.

FALLERS

• Deutsche Telekom is a telecommunications provider that fell 4.62% after its 2025 earnings forecast and German business growth outlook missed analyst expectations.

• BASF is a global chemical manufacturer that dropped 3.89% as its 2026 earnings outlook fell below estimates amid challenging demand and foreign exchange headwinds.

• EssilorLuxottica is an eyewear and lens producer that declined 3.26% due to rising competitive risks from technology companies and a patent infringement lawsuit.

SECTORS

Sectors rebounded last week as hopes for de-escalation in the Middle East fueled a relief rally. Industrials led gains, rising 4.49%, while Basic Resources followed at 4.47% as investors rotated into lagging sectors. Technology rose 3.57%, benefiting from continued AI infrastructure buildout. Financials climbed 4.12% despite earlier credit concerns. Conversely, Energy fell 0.11% as news of a potential deal to reopen the Strait of Hormuz caused oil prices to ease from recent peaks. Utilities and Health Care rose 3.69% and 2.10%, respectively, as investors sought defensive positioning amid ongoing geopolitical uncertainty and sticky inflation.