Markets Pause as Earnings Season Keeps Investors Guessing

Week Ending July 24, 2026

Last week was another reminder that markets don't move in a straight line.

Investors had plenty to digest, from a busy week of corporate earnings and continued developments in the Middle East to rising oil prices and ongoing discussions about artificial intelligence spending. While there were certainly moments of volatility, the bigger picture hasn't changed much.

What stood out to me most was that investors are becoming more selective. Rather than selling everything, they are paying closer attention to which companies are delivering strong results and which ones may face higher costs or slower growth ahead. That is a normal part of a maturing market.

Market Overview

Weekly Market Performance (July 20 to July 24, 2026)

• S&P 500: -0.61%
• Nasdaq Composite: -2.13%
• Dow Jones Industrial Average: -0.38%
• MSCI EAFE Index: +0.35%
• S&P/TSX Composite Index: +0.55%

The technology-heavy Nasdaq once again experienced the largest decline as investors reacted to earnings reports and concerns that some of the world's biggest technology companies may need to spend even more on artificial intelligence infrastructure than previously expected.

Here in Canada, the TSX had a much better week, finishing up approximately 0.55%. Higher oil prices continued to support Canada's energy sector, while financials remained relatively steady. Our market continues to benefit from being more diversified than the U.S., with less reliance on a handful of large technology companies.

Why Markets Were Choppy

The biggest driver of last week's volatility was earnings season.

Many companies reported solid financial results, but investors weren't just looking at what happened over the past three months. They were far more interested in what management teams expect for the rest of the year.

Several large technology companies announced they plan to increase spending on artificial intelligence infrastructure. While AI continues to be one of the biggest long-term investment themes, higher spending also means higher costs in the short term. Investors questioned whether those investments will generate enough future growth to justify today's valuations.

Geopolitical tensions also remained in focus throughout the week. Ongoing uncertainty in the Middle East pushed oil prices higher, which added another layer of caution for investors.

Canada Continues to Show Stability

While much of the attention remained focused on U.S. technology companies, there were encouraging signs here at home.

Higher crude oil prices provided another boost for Canadian energy producers, helping offset weakness in other areas of the market. Financial stocks also continued to provide stability, which is one reason the TSX has held up relatively well during recent bouts of market volatility.

Investors also continue to watch the Bank of Canada closely after its recent decision to leave interest rates unchanged. Inflation has improved considerably over the past year, but policymakers continue to signal they want more evidence before making additional rate cuts.

Overall, Canada's economic backdrop remains relatively stable, even as global uncertainty continues.

What the Week Really Meant

If I had to summarize last week in one sentence, it would be this:

Strong earnings alone aren't enough; investors also want confidence about what's coming next.

Markets are always looking ahead. A company can report excellent results, but if management expects slower growth or higher spending, investors may still react negatively.

That doesn't mean the long-term outlook has changed.

Corporate earnings overall have remained healthy, inflation continues to move in the right direction, and businesses are still investing for future growth. While markets may continue to experience short-term swings, these are normal periods that long-term investors should expect.

As I often remind clients, your financial plan isn't built around one earnings season or one week's headlines. It's built around achieving your goals over many years.

Looking Ahead

This week could be one of the most important of the summer.

The Federal Reserve will announce its latest interest rate decision on Wednesday, and investors will also receive several key economic reports, including second-quarter GDP, inflation data, and employment costs.

On top of that, several of the world's largest companies; including Microsoft, Meta, Apple, and Amazon, will report earnings. These results will provide further insight into consumer spending, business investment, and whether the pace of AI spending continues to accelerate.

If I had to sum up the current environment in one sentence, it would be this:

Markets remain healthy, but investors are becoming more selective about where they put new money.

Periods like this reinforce why diversification remains so important. Different sectors and different regions don't all move together, and that's exactly what helps create a more resilient portfolio over the long term.

This Week: Key Economic Data

Monday, July 27

• Durable Goods Orders

Tuesday, July 28

• Federal Open Market Committee (Day 1)
• Advance Economic Indicators
• Retail & Wholesale Inventories
• S&P CoreLogic Case-Shiller Home Price Index
• Consumer Confidence

Wednesday, July 29

• Federal Open Market Committee (Day 2)
• Federal Reserve Interest Rate Decision

Thursday, July 30

• Second Quarter Gross Domestic Product (GDP)
• Weekly Jobless Claims
• Personal Consumption Expenditures (PCE) Inflation Report

Friday, July 31

• Employment Cost Index
• University of Michigan Consumer Sentiment (Final)

This Week: Companies Reporting Earnings

Monday, July 27

• Welltower
• Cadence Design Systems
• Nucor

Tuesday, July 28.

• Visa
• Coca-Cola
• Boeing
• UPS
• Waste Management
• S&P Global
• Sherwin-Williams
• Hilton Worldwide

Wednesday, July 29

• Microsoft
• Meta Platforms
• Qualcomm
• Procter & Gamble
• Starbucks
• ADP
• Robinhood

Thursday, July 30

• Apple
• Amazon
• Mastercard
• Bristol Myers Squibb
• Stryker
• KKR
• Cigna
• American Electric Power

"Music is a higher revelation than all wisdom and philosophy."
– Ludwig van Beethoven

What wintry thing flies as it is born, lies when alive, and runs when dead?

_{Last Week's Riddle: Take a letter out of it, and it stays put and the same; remove all the letters from it, and it still stays put and stays the same. What is it?
Answer: A mailbox}