Market Insights

Global Momentum

Global equity markets have surged to all-time highs in August with broad-based participation across all sectors and regions. This healthy, wide-ranging advance—not concentrated in a few stocks—is driven by exceptional Q2 corporate earnings that exceeded expectations. Underpinning this rally is a combination of resilient consumer demand and expanding business activity, creating a favorable environment for continued earnings growth heading into the fall.

Technology & AI Catalyst

Technology equities led August's recovery, driven by strong earnings growth across semiconductors and energy sectors. Artificial intelligence is reshaping capital investment globally, with trillions being deployed into data centers and computing infrastructure. Recent tech earnings have definitively proven that demand for AI computing capacity is real and accelerating—this is a genuine, multi-year investment cycle that will drive earnings growth across the broader economy.

Rate & Inflation Landscape

A critical turning point has emerged in the monetary policy environment. While long-term bond yields remain elevated due to ongoing uncertainty about Federal Reserve direction, inflation is cooling faster than expected, with energy prices falling dramatically from their May peak. This creates a powerful tailwind for both equities and fixed income, removing a major source of portfolio uncertainty from recent years.

Canadian Market

(Source: RBC Wealth Management, Bloomberg, Optuma)

The S&P/TSX continued to show strength in August, with the index holding near record levels as investors remained optimistic about Canadian companies and commodity prices. Financial and resource stocks were key contributors, helping the market weather periods of volatility. At the same time, shifting interest-rate expectations, geopolitical developments and ongoing trade uncertainty kept investors on their toes. Gold and other commodity prices also remained an important source of support for Canadian markets, benefiting resource-focused companies. Looking ahead, the TSX’s performance will likely continue to be shaped by commodity prices, interest rates and the boarder global economic outlook.

American Market

(Source: RBC Wealth Management, Bloomberg, Optuma)

American markets continued to show resilience in August, with the S&P 500 and Nasdaq remaining near record levels. Strong corporate earnings and continued optimism around artificial intelligence helped support markets, although investors have become more cautious about elevated technology valuations. Rising treasury yields, trade tensions and geopolitical uncertainty have added some pressure, creating a more uneven market environment. Investors are now watching upcoming inflation data, Federal Reserve commentary and major technology earnings for clues about where markets could head next. With the U.S. midterm election approaching in November, political uncertainty is beginning to factor into investor sentiment, as markets assess how the election could influence future economic and fiscal policy. Overall, the American economy and corporate earnings remain supportive, but the balance between strong growth and higher valuations will be an important theme heading into September.

Global Markets

(Source: RBC Wealth Management, Bloomberg, Optuma)

Global markets held up well in August despite a challenging backdrop of geopolitical tensions, trade uncertainty and shifting expectations around interest rates. European markets were particularly strong, with improving earnings and attractive valuations helping the region gain investor attention. Meanwhile, rising energy prices and ongoing conflicts continued to create uncertainty, while gold benefited as investors looked for more defensive assets. Ongoing conflicts in the Middle East and Ukraine continued to influence markets, with concerns around energy supplies, trade and inflation adding another layer of uncertainty for investors. Looking ahead, investors will be watching inflation, central-bank decisions, trade developments and geopolitical events closely as markets navigate the remainder of 2026.

Summer Highlights

Jim enjoyed a productive summer exploring Southern Ontario's finest outdoor offerings. His time included boating excursions and leisure at the family farm, allowing for a balanced approach to relaxation and recreation.

Alex joined RBC's New Investment Advisor program this summer and has been focused on building strong client relationships from day one. Outside the office, he traveled to Greece, Maine, and Vancouver, with a notable highlight being attendance at a FIFA World Cup match.

Michael spent much of his summer at Lake Muskoka with family and friends. In July, he traveled to London, England to visit his sister and meet his newborn niece, Nora—a cherished family milestone.

Jonathan balanced time at Lake Muskoka and Lake Huron with family and friends, while remaining active with an intramural hockey team throughout the season.

Upcoming Events

RBC Race for the Kids

September 19th, 2026, the MacLean Wealth Management Group will be participating in the Sunnybrook x RBC Race for the Kids. This race is an annual fundraising event that supports Sunnybrook Hospital’s pediatric programs and research, helping to advance care for the children in our community. Our team is proud to be participating and supporting in such a great cause. If you'd like to join us or show your support, please visit the link below. Together, we’re making a difference for kids at Sunnybrook.

RBC: YSC Branch - RBC Race for the Kids

Toronto International Film Festival

The Toronto International Film Festival is one of the world's largest and most prestigious film festivals, showcasing innovative cinema from around the globe. It starts on September 10th and ends on September 20th, 2026.

1. Tenzing

2. Ink

3. Debut

4. The Life and Deaths of Wilson Shedd

5. Your Mother Your Mother Your Mother

6. American Hostage

7. Evil Genius

8. Bunker

9. The Stunt Driver

10. The Housewife

TIFF - Toronto International Film Festival

Important Reminders

Fraud and Scam Alerts

Protecting your financial security is our top priority at RBC DS. Fraudsters continue to evolve, and staying informed is essential. The guide below outlines practical steps for reporting incidents, protecting your accounts, and recovering from fraud. We encourage everyone to review this resource and contact RBC immediately if you suspect suspicious activity.

fraud-scam-recovery-guide.pdf