The first half of 2026 has been marked by both resilience and uncertainty. After a turbulent first quarter that saw conflict in the Middle East raise concerns about global energy supplies, the second quarter brought a somewhat more stable backdrop, although geopolitical and economic risks remain.
Corporate earnings remained strong, with many companies reporting solid results. At the same time, investment in artificial intelligence infrastructure continued to be a major theme, as large technology and cloud computing companies reaffirmed plans to significantly expand spending on data centres and related infrastructure.
Together, these factors contributed to positive market performance through the first half of the year. As of June 30, both the S&P/TSX Composite Index and the S&P 500 Index were up more than 10% year to date.
Looking Ahead
While markets have performed well so far in 2026, uncertainty remains. Trade policy, tariffs, geopolitical developments, and energy markets all have the potential to create periods of increased volatility.
Economic growth is also expected to remain modest as many businesses continue to navigate an uncertain environment. One area that continues to stand out is investment in AI infrastructure, where spending commitments remain significant.
Corporate earnings will remain an important factor to watch in the months ahead. Results have generally been strong to start the year, although future outcomes will depend on a range of economic, geopolitical, and company-specific factors.
As always, maintaining a long-term perspective remains important. While market volatility can be unsettling, it is a normal part of investing and has historically been a feature of long-term wealth creation.
Ultimately, investing is a long-term exercise, and rather than trying to time the market based on short-term events, it’s important to keep headlines in perspective and stay focused on your broader goals and long-term investment strategy.
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This content has been prepared by Portfolio Stewards Inc. (PSI) for informational purposes only. It is not intended to provide individualized investment advice outside of the discretionary portfolio management services provided by PSI. The views, opinions, market commentary and economic outlook expressed are those of PSI as of the date of publication and are subject to change without notice. Forward-looking statements, forecasts and estimates are based on assumptions believed to be reasonable at the time they are made.
Performance information presented is historical and is provided for illustrative purposes only. Past performance is not indicative of future results. Actual client returns may differ. All investing involves risk, and there can be no assurance that any investment strategy or objective will be successful. Any discussion of SAIF is provided for informational purposes only and should not be interpreted as a recommendation or solicitation to invest. Investment decisions for discretionary accounts are made in accordance with each client’s Investment Policy Statement, objectives and applicable requirements. PSI is registered as a Portfolio Manager and Exempt Market Dealer in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.