Global Markets
Canadian Markets
Canadian markets climbed over 1% on strength on the mining sector, with gold rising more than 3% and lifting materials stocks broadly, while financials and technology also advanced. The energy sector was a major drag, falling over 5% as oil prices declined sharply. The weakness in crude was tied to easing geopolitical risk, with markets reacting to rising expectations of a potential U.S.–Iran peace agreement, which pushed oil to two-week lows and contributed to a broader shift in risk positioning by hedge funds, which have become more tactically agile amid volatile macro conditions. Canadian economic activity showed notable improvement, with the Ivey Purchasing Managers’ Index (PMI) jumping to 57.7 in April from 49.7 in March, marking the strongest expansion in seven months.
American Markets
US stocls extended their rally to fresh record highs, driven in part by a strong earnings beat from AMD, which reported Q1 2026 revenue of $10.3 billion (+38% YoY) and EPS of $1.37, surpassing expectations and sending shares up more than 18% as investors responded positively to a sharply higher outlook, particularly in AI-related data centre demand, where revenue surged 57% to $5.8 billion. The broader U.S. market was also supported by falling oil prices, which eased inflation concerns and reinforced expectations of more stable monetary conditions. This combination of strong tech earnings and softer energy prices created a supportive backdrop for risk assets and helped sustain the upward momentum in the major indexes.
European Markets
European markets also rallied over 2%, largely driven by optimism surrounding the potential de-escalation in Middle East tensions, which improved sentiment and reduced energy shock fears. However, underlying economic data remained weak, with services PMIs showing contraction in multiple economies, as Germany’s services sector fell at its fastest pace in over three years, France’s contraction deepened further, and Ireland’s services sector shrank for the first time in five years, highlighting broad-based softness across the region. Markets were also influenced by shifting monetary policy expectations, as rising inflation pressures increased speculation about a potential ECB rate hike.
In the UK, markets gained over 2% despite underlying fiscal and inflationary pressures, as the pound weakened and government borrowing costs reached a 30-year high. Reports revealed today that firms continue to pass through higher costs to consumers, with PMI data showing widespread implementation of fuel surcharges as input costs surged.
Corporate News
Abercrombie & Fitch (ANF): Barclays downgraded the stock to underweight from equal weight and cut its price target to $76 from $95, citing rising promotional pressure and increased competition in the Hollister division.
Advanced Micro Devices (AMD): Jefferies raised its price target to $415 from $300, after strong revenue guidance driven by accelerating server CPU growth and AI-related demand. The stock also benefited from a broader semiconductor rally after strong earnings.
Arista Networks (ANET): Beat Q1 expectations with $2.71B in revenue and EPS of $0.87, but shares declined as results failed to exceed already elevated AI-driven expectations.
Blue Owl Capital (OWL): Stack Infrastructure, its data center arm, is reportedly exploring strategic options including a potential sale of Asia operations valued above $30B amid fund redemption pressures.
Cenovus Energy (CVE:CA): Reported higher Q1 profit supported by stronger oil prices and record upstream production of 972,100 boepd following the MEG Energy acquisition.
Devon Energy (DVN): Missed profit estimates due to weak natural gas pricing, with Permian bottlenecks keeping gas prices negative and offsetting stable production.
EOG Resources (EOG): Beat earnings expectations on stronger output and natural gas pricing, while shifting capital toward higher-return oil assets.
Freshworks (FRSH): Announced layoffs of 11% (~500 employees) as it restructures around AI automation, with over half of code now AI-generated.
Intact Financial (IFC.CA): TD Cowen cut its price target to C$347 from C$354, citing potential weakness in global specialty insurance and UK exposure.
Jacobs Solutions (J): Raised annual profit outlook on strong demand for AI data center engineering and infrastructure services.
KKR & Co (KKR): Piper Sandler raised its price target to $125 from $117, citing strong Q1 earnings and improved net income performance.
Lucid Group (LCID): Suspended full-year guidance after a major revenue miss caused by production disruptions in its Gravity SUV rollout.
Match Group (MTCH): Beat revenue estimates at $864M, driven by Hinge strength and early Tinder recovery supported by AI-driven product changes.
Mattel (MAT): Jefferies raised its price target to $19 from $18, expecting stronger FY26 growth from upcoming film releases including Toy Story 5.
Meta Platforms (META): Developing a personalized AI assistant using agentic AI tools to expand user-level automation and digital assistance.
PayPal (PYPL): Fell despite strong revenue ($8.35B) as investors focused on restructuring plans targeting $1.5B in cost savings.
Rivian Automotive (RIVN): Expanding R2 platform with undisclosed variants as it prepares for broader mass-market EV rollout.
Solventum (SOLV): Raised full-year profit guidance to the top end of its range on strong wound care and sterilization demand.
Super Micro Computer (SMCI): Surged after forecasting Q4 revenue of $11B–$12.5B, driven by strong AI server demand despite regulatory scrutiny.
Suncor Energy (SU:CA): Beat earnings estimates on higher production and refining throughput with strong utilization rates.
Thomson Reuters (TRI:CA): TD Cowen raised its price target to C$185 from C$175 on strong organic growth in legal and corporate segments.
Walt Disney (DIS): Beat earnings with EPS of $1.57, driven by streaming and parks, and reaffirmed double-digit EPS growth outlook into FY2026–2027.
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