Global Asset Allocation Team Market Update – August 2026
Financial market volatility resurfaced in July as investors contemplated an environment dominated by geopolitical headwinds, renewed trade tensions, and fading enthusiasm around the artificial intelligence (AI) trade. Namely, hostilities between the US and Iran intensified after President Trump declared the tentative ceasefire to be over. Meanwhile, trade tensions resurfaced after President Trump imposed new duties on imports from most major US trading partners. Finally, the global selloff in chipmakers gathered pace, with investors rushing to exit positions whose valuations grew increasingly rich.
Global equity markets posted some mixed results in July. The MSCI All Country World ended the month unchanged. The S&P 500 (-0.1%) retreated on the back of a notable decline in the technology sector (-3.5%). The Nasdaq stumbled -6.6% – back to correction territory. The S&P/TSX (+1.1%) outperformed its global peers by a wide margin – thanks to solid performance in the heavyweight energy space (+6.9%). Elsewhere, the MSCI EAFE (+1.9%) also had a solid month – while the MSCI gauge of emerging market stocks (-3.3%) tumbled lower on the back of a sharp selloff in chipmaker stocks across both Korea and Taiwan.
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