Global Market Update
Canadian Markets
Canada’s main stock index declined on Tuesday, pressured by weakness in the commodity sector as crude oil prices fell 1.5% and gold slipped by 0.5%. The drop in energy and materials weighed heavily on the TSX, which is heavily weighted toward resource-based industries. Statistics Canada reported that the country’s annual inflation rate slowed to 1.7% in July, down from 1.9% in June. The decline was primarily driven by a 16.1% year-over-year drop in gasoline prices, attributed largely to the recent removal of the federal carbon tax. The cooling inflation figures may ease pressure on the Bank of Canada to raise interest rates further, potentially influencing future market movements.
American Markets
In the U.S., major stock indexes closed lower as technology and AI-related stocks led the retreat, marking a sharp reversal from their recent rally. High-growth names, particularly in the artificial intelligence space, faced intensified selling pressure as investors moved to lock in profits after months of substantial gains. This wave of profit-taking comes amid a broader environment of heightened market caution, with sentiment turning more defensive in the face of mixed economic data. Recent reports have shown slowing consumer spending, uneven job growth, and persistent inflationary pressures — all of which contribute to uncertainty about the strength and sustainability of the U.S. economy.
Investors are increasingly focused on the U.S. Federal Reserve’s next move, as the central bank balances the need to control inflation against the risk of tightening financial conditions too much and triggering a recession. With no clear consensus on the Fed’s rate path — and with some Fed officials signaling patience while others leave the door open to further hikes — traders are opting to reduce exposure to risk-sensitive sectors. The pullback in tech stocks, have become emblematic of investor optimism around AI and innovation but are now seen as vulnerable in the uncertain macroeconomic backdrop.
European Markets
European markets traded in positive territory, buoyed by renewed hopes for diplomatic progress in Ukraine. Reports suggesting movement toward a potential peace treaty lifted investor sentiment, although optimism was tempered by fresh corporate earnings data. Second-quarter earnings growth for European companies is now expected to come in at 4.6%, slightly down from the 4.8% forecast just a week earlier. The revised outlook hints at a mild deterioration in corporate health after several weeks of improving trends.
In the UK, the stock market gained, led by financials, while defence stocks retreated on the back of optimism surrounding Ukrainian peace efforts. The British pound strengthened against the U.S. dollar, reflecting both improved risk sentiment in Europe and expectations that the Bank of England may maintain a relatively hawkish stance on interest rates compared to its global peers.
Corporate News
Air Canada (TSX: AC): Air Canada reached a tentative agreement with its flight attendants’ union, ending the first cabin crew strike in 40 years, and will gradually resume normal operations.
Amazon.com Inc. (NASDAQ: AMZN) & Arm Holdings PLC (NASDAQ: ARM): Arm has hired Amazon’s AI chip director Rami Sinno to accelerate its development of in-house AI chips, moving beyond design into chip production.
Apple Inc. (NASDAQ: AAPL): Britain dropped its request for Apple to create an encrypted data backdoor, leading to diplomatic resolution supported by U.S. officials and Apple retaining its security features.
Bausch + Lomb Corp. (NYSE: BLCO): Brett Icahn and Gary Hu resigned from Bausch + Lomb’s board after the termination of an agreement with Carl Icahn’s group due to changes in ownership threshold.
Bausch Health Companies Inc. (TSX: BHC): Brett Icahn and Steven Miller resigned from Bausch Health’s board following the end of a separate director agreement linked to Icahn’s stake.
Bird Construction Inc. (TSX: BDT): TD Cowen cut Bird Construction’s target price to C$31 from C$34 due to slower near-term revenue growth and project delays.
Camden Property Trust (NYSE: CPT): Jefferies lowered its price target to $130 from $137, citing moderating Sunbelt multifamily housing supply forecasts.
Dick’s Sporting Goods Inc. (NYSE: DKS): TD Cowen raised its target price to $231 from $205, citing market share gains and positive feedback from key brand partners.
DoorDash Inc. (NASDAQ: DASH): The EU will review DoorDash’s $3.9B takeover of Deliveroo under a simplified merger procedure, suggesting no major competition concerns.
Home Depot Inc. (NYSE: HD): Home Depot missed Q2 sales and profit expectations as consumers cut back on large renovations amid higher mortgage rates.
Intel Corp. (NASDAQ: INTC): SoftBank is investing $2 billion in Intel, becoming a top-10 shareholder in a move seen as part of a broader AI and political alignment strategy.
J.M. Smucker Co. (NYSE: SJM): Jefferies raised its target price to $128 from $115, citing resilient brand performance and underappreciated coffee margin growth.
Medtronic PLC (NYSE: MDT): Medtronic will add two independent directors and new board committees after activist investor Elliott Management took a major stake.
North American Construction Group Ltd. (TSX: NOA): Raymond James lowered its price target to C$26 from C$30 following weak quarterly results and stock volatility.
Nvidia Corp. (NASDAQ: NVDA): Nvidia is developing a new AI chip for China, the B30A, which will comply with export rules but offer improved performance over the current H20 model.
Palo Alto Networks Inc. (NASDAQ: PANW): Palo Alto forecasted strong fiscal 2026 revenue and EPS above analyst estimates, boosting shares on strong AI-driven cybersecurity demand.
Palo Alto Networks Inc. (NASDAQ: PANW): Scotiabank raised its target price to $228 from $225 following strong quarterly results and optimistic guidance.
Sinclair Inc. (NASDAQ: SBGI) & Tegna Inc. (NYSE: TGNA): Sinclair has offered to merge with Tegna, though high debt levels could complicate any deal, as Tegna also explores a sale to Nexstar.
Tesla Inc. (NASDAQ: TSLA): Tesla began accepting orders in China for its new Model Y L, part of a product refresh aimed at countering competition in the world’s largest EV market.
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