July 26, 2025 | Tech Talk for Saturday July 26th 2025

The Bottom Line

Here comes equity market volatility! Lots of market moving news impacting North American equity markets this week including:

 FOMC and Bank of Canada’s decisions on interest rates on Wednesday. No changes in U.S. and Canadian administered rates are expected, but traders will watch closely for potential timing for future rate reductions in the Fed Fund Rate and Bank of Canada Rate.

 A peak in the frequency of quarterly corporate results by major Canadian and U.S. companies. Results to date have been impressive. Focuses this week are on reports by Microsoft and Meta on Wednesday, Apple and Amazon on Thursday and ExxonMobil and Chevron on Friday.

 Tariff Day on Friday. Look for favourable equity market responses prior to Friday by nations that reach a deal with Trump at a favourable rate. Thereafter, caveat emptor!

The U.S. equity market is following its traditional upside move to the end of July during post U.S. Presidential election years: strength to the end of July followed by a brief correction until the end of September. A major reason for following this trend this year is that corporate results in the U.S. in the third quarter have been “front run” in the second quarter by tariff negotiations. Look for the traditional pullback in August and September when corporate revenue and earnings gains stall. Resumption of an uptrend in the fourth quarter is expected.

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Don Vialoux July 26th, 2025

Posted In: Tech Talk

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