Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.

You can catch up on the past four weeks’ Weekly Update in the link to my Blog.

Read my latest Smart Investor newsletter on my website. The Q1 2026 edition covers Market Review for the year 2025, some long-term themes that drive investments, and how to achieve a balanced approach to wealth and health. Shiuman’s Corner covers the books I read last year.

Markets

Market scorecard as of close on Friday February 2, 2026.

Country	Equity Indices	Level	1 week	YTD
Canada	S&P/TSX Composite	31,924	-3.7%	0.7%
U.S.	S&P 500	6,939	0.3%	1.4%
U.S.	NASDAQ	23,462	-0.2%	0.9%
Europe/Asia	MSCI EAFE	3,043	1.6%	5.2%

Source: FactSet

• TSX closed sharply lower in Friday afternoon trading, near the worst single session levels since Liberation Day aftermath. Most sectors lower. Materials the worst performer, down more than 8% on falling gold and silver prices. Canadian equities finished the week down 3.7%. 
• US equities finished down in Friday trading, though ended off worst levels.
• The S&P 500 hit an all-time high, briefly crossing above 7,000 for the first time on Wednesday morning. This feat was far from an obvious outcome for U.S. equity investors almost 10 months ago when the index closed at 4,982.77 on April 8. At that time, “Liberation Day” and ultra-high tariff levels were the topic du jour.
• ECONOMY
• Canada
• The Bank of Canada (BoC) on Wednesday held its benchmark policy rate steady at 2.25%, in line with market expectations, signalling continued caution amid a complex economic backdrop. RBC Economics believes the BoC will likely keep overnight rates steady through the end of 2026—indicating limited impetus for further easing but also a reluctance to tighten without clear evidence of renewed inflationary pressures.
• Canadian retail sales rose 1.3% m/m to CA$70.4 billion in November, rebounding after October’s weakness was linked to a labour dispute at British Columbia’s liquor distribution branch.

U.S.

• In the U.S., the Fed’s decision to pause its rate-cutting cycle reflected confidence in the underlying strength of the U.S. economy, even as inflation remains above target. Fed Chair Powell reiterated the central bank’s commitment to both price stability and full employment, reinforcing a data-dependent approach. Taken together, the tone suggests that future rate cuts, when they occur, are likely to be gradual and carefully calibrated.
• After a year of railing against current chair Jerome Powell for not slashing interest rates, the U.S. President announced that he will put Kevin Warsh forward to step into the role when Powell’s term ends in May. Warsh became the youngest governor on the Fed Reserve board when he was appointed in 2006 at 35. Although he has historically objected to low-interest rate policies, his recent public statements indicate his position has changed.

Further Afield

• The euro has strengthened as much as 3.5% against the U.S. dollar since mid-January, raising questions regarding the potential impact on both European corporate earnings and the European Central Bank’s (ECB’s) monetary policy.
• Japan has seen sharp moves across a variety of asset classes recently as the country gears up for a snap election for the lower house of Parliament on Feb. 8.

Notes About Companies in Model Portfolio

• U.S. earnings season is well underway, with more than a quarter of S&P 500 companies reporting Q4 2025 results so far. Overall results have been encouraging, with companies beating consensus profit estimates near their historical average rate. That said, elevated valuations suggest a fair amount of optimism may already be reflected in prices.
• Apple® (AAPL) announced Thursday financial results for its fiscal 2026 Q1 ended December 27, 2025. The Company posted quarterly revenue of $143.8 billion, up 16 percent year over year. Diluted earnings per share was $2.84, up 19 percent year over year.
• CN (TSX: CNR) reported Friday its financial and operating results for Q4 and year ended December 31, 2025. Revenues of C$4,464 million, an increase of C$106 million, or 2%. For the full year 2025, revenues of C$17,304 million, an increase of C$258 million, or 2%, with adjusted net income of C$4,756 million, an increase of C$250 million, or 6%.
• Visa (NYSE: V) announced Thursday its fiscal 2026 Q1 financial results. Net revenues of $10.9 billion, and increase of 15% over prior year period. Earnings per share of $6.1, up 12%.

Feel free to contact me with any questions and/or to discuss investment ideas.

Regards,

Shiuman

 

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