Weekly Wrap

Global stock markets faced a rough and largely negative week, as geopolitical instability and stubborn inflationary pressures triggered a widespread retreat from risk. The S&P 500 and Dow Jones Industrial Average extended their losing streaks to five consecutive weeks, while the tech-heavy Nasdaq Composite officially entered correction territory (down close to 4% this week), falling more than 10% from its recent peak. Escalating tensions involving Iran remained the primary catalyst. Fears of supply disruptions in the Strait of Hormuz—a critical chokepoint for 20% of the world's oil—pushed Brent crude prices above $110 per barrel. While President Trump announced a 10-day pause on potential strikes to allow for negotiations, market skepticism grew as Tehran rejected several ceasefire proposals. The surge in energy costs reignited stagflation fears, leading investors to price out near-term interest rate cuts by the Federal Reserve. AI-related stocks faced a sell-off following news from Alphabet regarding more efficient, less compute-heavy models, which pressured semiconductor giants like NVIDIA. Additionally, a landmark legal ruling labeling certain social media platforms as "addictive" weighed heavily on Meta and Alphabet. 

The good news is that the market reaction to geopolitical events is better than Trump thought, “I thought the oil prices would go up more and I thought the stock market would go down more. It hasn’t been nearly severe as I thought.” The Canadian market has shown remarkable resilience compared to its U.S. counterparts this week, largely due to its heavy weighting in energy and commodities. While the S&P/TSX Composite Index has faced downward pressure late in the week—dropping about 1.5% on Thursday to near the 31,888 level—it had remains one of the few major global indices holding onto a year-to-date gain until mid-week and is the only market in North America heading towards a positive 5-day period (almost 1.5% as of writing and positive today too). The STOXX Europe 600 is also heading for a positive week up over 1% this week. The Emerging Markets, sensitive to energy prices and the strengthening U.S. dollar have had a tough week with the MSCI EM Index down just over 2%.

Market Insights

Middle East: Awaiting Clarity: Now in the fourth week of what U.S. officials initially framed as a four-to-six-week operation in Iran, time remains the central variable. Mixed messaging from the U.S. and Iran’s apparent inclination to prolong tensions continue to obscure expectations around the conflict’s duration. A potential opening for de-escalation emerged this week after U.S. President Trump announced a five-day halt in strikes on Iranian infrastructure, followed by a “15-point” peace framework delivered to Iran. Whether this reflects the start of diplomatic reengagement is unclear. Limited domestic support and rapidly rising fuel prices should incentivize the U.S. to pursue an off-ramp, while Iran’s interest in preserving the regime and critical infrastructure could eventually support a return to negotiations. However, despite somewhat more constructive signals, Iranian officials continue to deny that substantive talks are underway. This morning, Trump extended his deadline to open the Strait of Hormuz by 10 days. For markets, commodity prices, particularly oil, remain the primary transmission channel. The world economy has weathered high oil prices before, but the speed of the recent increase, coupled with disruptions to a key trade route (the Strait of Hormuz), makes this episode more challenging. Greater visibility on the conflict’s trajectory and commodity price pressures will likely be required before markets can stabilize more durably. We continue to watch for more credible signs of de-escalation.

Central Banks: A Cautious Approach: Against a backdrop of easing U.S. growth and growth indicators in Europe weakening, the interest rate outlook has shifted as markets incorporate the inflationary impact of higher energy prices, scaling back expectations for rate cuts. Although this reaction is sensible, it may be placing too much focus on near-term price pressures. While higher oil prices lift inflation, they also drag on growth by reducing consumer spending, which tends to be disinflationary over time. In addition, monetary policy is not well equipped to address supply-driven price shocks, as interest rates have limited influence on underlying supply issues. Accordingly, most major central banks held rates steady at their latest meetings, emphasizing a wait-and-see, data-dependent approach. In the U.S., inflation remains somewhat above target, while job gains have slowed. In Canada, inflation has moved closer to target and the economy is operating with more slack, allowing policymakers flexibility to monitor developments for future decisions.

Portfolio Update

No portfolio updates this week.

Planning On

Top Tax Deductions for Freelancers, Side-Hustlers and the Self-Employed

Commonly known as ‘write-off’s, these tax deductions allow business owners to reduce the amount of tax they are required to pay. Money that you need to spend in order to run your business may be an expense you can claim when doing your taxes. Key to this, though, is documenting all these expenses and ensuring that you have receipts for everything.

Here are some common deductions:

•             Accounting and tax software

•             Advertising, website, and marketing fees

•             Business supplies

•             Home office and home office-related expenses such as utilities, rent or property taxes

•             Meals, entertainment, and travel

•             Transportation, including your car

•             Bank charges — This means the cost of your business bank account can be written off against your income

Common expenses that are often claimed but not allowed include dry cleaning, clothing, parking tickets and commuting costs.

It is key to remember the importance of being reasonable. You certainly don’t want to invite the scrutiny of CRA. The expenses that are often most looked at carefully include entertainment, meal expenses, travel, and professional fees (some of which are only 50% deductible).

You also don’t need a shoe box at home in which you can stuff all your receipts and then dump them onto your accountant’s desk come tax time. There are great apps out there that help you track allowing you to take a quick snapshot of your receipt for uploading.

So, ensure you keep onside of the tax rules and get that refund!

This information is not intended to provide legal, tax, or insurance advice. To ensure that your own circumstances have been properly considered and that action is taken based on the latest information available, you should obtain professional advice from a qualified lawyer or accountant, as applicable, before acting on any of the information.

Monthly Conference Call Reminder

Please be reminded that Friday, April 3rd is the Good Friday holiday; therefore, the Monthly Conference Call will be held on Friday, April 10th instead. Please expect to receive a call invitation next week.

Charts of the Week

Spare Time Updates

Four life hacks to help you conquer spring cleaning

To make your life – and your transition from winter to spring – a little easier, here are four life hacks to help you conquer spring cleaning!

Ancient DNA Reveals Europe’s First Dogs Came from Eastern Wolves — Not Local Ones

Learn how DNA from 14,200-year-old dogs shows they lived in Europe before farming and traces their ancestry to eastern wolves.

 _________________________________________

RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. â / ™ Trademark(s) of Royal Bank of Canada.  Used under license.  © RBC Dominion Securities Inc. 2026. All rights reserved. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor.  This will ensure that your own circumstances have been considered properly and that any action is taken based upon the latest available information. The strategies and advice in this report are provided for general guidance.  Readers should consult their own Investment Advisor when planning to implement a strategy. Interest rates, market conditions, special offers, tax rulings, and other investment factors are subject to change. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities.  This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof.   The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. This publication is for information purposes only. Graphs and charts are used for illustrative purposes only and do not reflect future values or changes. Past performance is not indicative of future returns. This commentary is based on information that is believed to be accurate at the time of writing and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns. This publication is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy.