Markets Push Higher as AI Momentum Continues to Drive Investors

Week Ending July 10, 2026

It was another eventful week in the markets, although the path higher was anything but smooth. Investors had to navigate renewed tensions in the Middle East, uncertainty around the Federal Reserve, and another busy week of economic news. Despite those headlines, technology stocks, particularly companies tied to artificial intelligence, once again helped lift the broader market.

The week served as another reminder that markets rarely move in a straight line. While there were moments of volatility, investors remained focused on the longer-term outlook rather than the daily headlines.

Market Overview

Weekly Market Performance (July 6 to July 10, 2026)

• S&P 500: +1.23%
• Nasdaq Composite: +1.74%
• Dow Jones Industrial Average: -0.50%
• MSCI EAFE Index: -1.42%
• S&P/TSX Composite Index: +0.10%

The biggest gains once again came from technology companies, particularly semiconductor and artificial intelligence related businesses. While the Dow finished the week lower, the broader market remained resilient as investors continued to favor growth-oriented sectors.

Here in Canada, the TSX posted a modest gain for its third consecutive positive week. Financial companies remained supportive, while strong results from Aritzia helped lift the consumer discretionary sector. Technology shares also contributed to the gains as investors remained optimistic about the outlook for corporate earnings.

Why the Market Moved Higher

Artificial intelligence remained the dominant story.

After some investors questioned whether AI-related stocks had become too expensive in recent weeks, buyers returned in force. Semiconductor companies led the rally, helping the Nasdaq outperform once again.

Markets were briefly rattled midweek as renewed conflict in the Middle East increased geopolitical uncertainty. Those concerns eased somewhat after reports suggested diplomatic efforts between the United States and Iran were continuing, allowing investors to refocus on corporate fundamentals and long-term growth.

By Friday, several of the largest technology companies helped drive a broad market rally, allowing both the S&P 500 and Nasdaq to finish the week solidly higher.

The Federal Reserve Still Wants More Data

Another closely watched event was the release of minutes from the Federal Reserve's June meeting.

The minutes showed policymakers remain divided about what comes next for interest rates. Some officials believe inflation still poses enough of a risk to justify keeping rates higher for longer, while others see signs that price pressures are easing and would be comfortable lowering rates if inflation continues to improve.

For investors, the takeaway was fairly straightforward: the Federal Reserve is not making any sudden moves. Instead, it will continue watching incoming economic data before deciding its next step.

That patient approach has generally been supportive for markets, as it gives businesses and consumers more time to adjust to the current interest rate environment.

What Canada Was Telling Us

There was encouraging news north of the border as Canada's June employment report came in stronger than expected. The better-than-anticipated job growth suggests the Canadian economy continues to show resilience despite higher interest rates and slower economic growth.

Investors are now looking ahead to this week's Bank of Canada interest rate announcement. Most economists expect the Bank to leave its policy rate unchanged at 2.25% while continuing to monitor inflation and economic growth.

While Canada's economy continues to grow at a slower pace than the United States, stable employment and resilient consumer spending remain encouraging signs.

What the Week Really Meant

If I had to summarize last week in one sentence, it would be this: strong businesses continue to outperform even when uncertainty remains.

There is no shortage of headlines that could make investors nervous. Geopolitical tensions remain elevated, inflation has not completely disappeared, and central banks are still carefully weighing their next moves.

Yet markets continue to reward companies with strong earnings, innovative products, and long-term growth potential.

That doesn't mean volatility has gone away. In fact, short-term swings are a normal part of investing. But weeks like this remind us why staying focused on long-term goals rather than reacting to every headline is often the better approach.

Looking Ahead

This week could be an important one for both markets and interest rate expectations.

Investors will be watching June's Consumer Price Index (CPI) and Producer Price Index (PPI) for fresh evidence on whether inflation continues to cool. Retail sales, housing data, and industrial production will also provide additional insight into the strength of the U.S. economy.

Earnings season also shifts into high gear, with several of North America's largest banks reporting results, followed by companies across healthcare, industrials, and technology.

If I had to sum up the current environment in one sentence, it would be this: investors remain optimistic, but they are looking for continued proof that inflation is moving lower and economic growth remains resilient.

This Week: Key Economic Data

Monday, July 13

• Treasury Balance

Tuesday, July 14

• NFIB Small Business Optimism Index
• Consumer Price Index (CPI)
• Fed Chair Kevin Warsh presents Monetary Policy Report to Congress
• Chicago Fed President Austan Goolsbee speaks

Wednesday, July 15

• Producer Price Index (PPI)
• Personal Consumption
• New York Fed President John Williams speaks
• Federal Reserve Beige Book
• Bank of Canada Interest Rate Decision

Thursday, July 16

• Retail Sales
• Weekly Initial Jobless Claims
• Manufacturing & Trade Inventories
• NAHB Housing Market Index
• Pending Home Sales
• Dallas Fed President Lorie Logan speaks

Friday, July 17

• Housing Starts
• Import Prices
• Industrial Production
• Capacity Utilization
• University of Michigan Consumer Sentiment Survey

This Week: Companies Reporting Earnings

Tuesday, July 14

• JPMorgan Chase (JPM)
• Bank of America (BAC)
• Goldman Sachs (GS)
• Wells Fargo (WFC)
• Citigroup (C)

Wednesday, July 15

• Johnson & Johnson (JNJ)
• Morgan Stanley (MS)
• BlackRock (BLK)
• Progressive (PGR)
• BNY (BNY)
• PNC Financial Services (PNC)
• Elevance Health (ELV)
• Kinder Morgan (KMI)
• Cintas (CTAS)

Thursday, July 16

• UnitedHealth Group (UNH)
• GE Aerospace (GE)
• Netflix (NFLX)
• Abbott Laboratories (ABT)
• Prologis (PLD)
• U.S. Bancorp (USB)

Friday, July 17

• Travelers (TRV)
• Truist Financial (TFC)

"You cannot talk to people successfully if they think you are not interested in what they have to say or you have no respect for them."
– Larry King

Brittany carried a load of wood in a wheelbarrow, yet the wood was neither straight nor crooked. How could this be?

_{Last Week's Riddle: I lack lungs, yet I constantly need oxygen; I have no mouth, but sufficient water will drown me. What am I?
Answer: Fire}

_{Fish On!}

Footnotes And Sources

1. WSJ.com, July 10, 2026
2. Investing.com, July 10, 2026
3. WSJ.com, July 6, 2026
4. CNBC.com, July 7, 2026
5. CNBC.com, July 8, 2026
6. CNBC.com, July 9, 2026
7. CNBC.com, July 10, 2026
8. CNBC.com, July 8, 2026
9. Healthline, April 14, 2026
10. IRS.gov, July 24, 2025

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