The Quarterly Market Outlook provides investors with our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.
Important Notice:
The guidance and views expressed in this report reflect our best thinking as of the time of publication. As market conditions and economic factors evolve, this information may no longer be current or fully accurate. For the most up-to-date portfolio construction guidance and advice tailored to your needs, please speak with your Edward Jones financial advisor.
Looking back at the first half
Oil prices fell in the second quarter as geopolitical tensions eased. Alongside resilient global economic data and strong corporate earnings growth, this backdrop helped fuel a rally in global stocks, reversing first-quarter softness and driving solid gains through the first half of the year.
Canadian outlook
Canadian economic activity has been sluggish in 2026, marked by weak growth and tepid hiring. However, low core inflation and early signs of improving manufacturing activity suggest conditions could start to improve.
Equity outlook
During the second quarter, both the TSX and the S&P 500 rebounded nicely from the March lows. However, in the last few weeks of the quarter, we did see a notable reversal in U.S. market leadership.
Fixed-income outlook
The Bank of Canada is likely to remain on hold as it looks through energy-driven price pressures to focus on core inflation, which remains close to target. U.S. inflation has moved further above the Federal Reserve’s 2% target, effectively removing the likelihood of rate cuts this year.
International outlook
Overseas stocks have outpaced Canada and U.S. returns since the start of 2025 despite global trade disruptions and a flare-up in geopolitical risks.
A K-shaped U.S. economy
The U.S. is increasingly described as a K-shaped economy, in which higher income households are largely prospering while lower income households fall behind. How big are these splits, and what do they mean for investors?
Strategic asset allocation guidance
Our Strategic Asset Allocation represents our view of balanced diversification for the fixed income and equity portions of a well-diversified portfolio based on our outlook for the economy and markets over the next 30 years.
Quarterly market outlook - Full report from Edward Jones
Download the entire quarterly market outlook report here.
Important information:
This content is provided as general information only and should not be interpreted as specific recommendations or investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation.