July Markets

Rotation was the market story for July as the Big Tech names gave up some tremendous gains this year and money flowed into the other sectors that until now have been largely ignored. Canada fared very well this month as did the big blue chip U.S. Dow Jones Industrial Average names. The tech concentration of the U.S. S&P 500 and the U.S. Nasdaq indexes were lower through the month but recovered nicely on the final day. On the economic front, moderating inflation reinforced expectations for U.S. rate cuts and markets were unphased by the July 13th, Trump assassination attempt and President Bidens’ election withdrawal. All things considered, July was a remarkable month.  

 July Highlights

Earnings upbeat, at the halfway point of reporting on pace for:

• US Blue Chip
  + 9.8% gains                                                        

• US S&P 500
  + 4.27%                                                                                      

• US Nasdaq (Tech)
  +1.58%

• US Russell 2000 (Small Caps)
  -1.57%                                                                      

• TSX (Canada)
  +11.05%                                                                        

• Canadian market closes above 23,000 to reach all-time high
  +5.27%