Global Asset Allocation Team Market Update – March 2026

Global equity markets (+1.2%) climbed to a fresh record high in February. Regionally, however, results were mixed as concerns over AI’s disruptive impacts fueled an ongoing rotation both within and outside the United States. Of note, the S&P 500 (-0.9%) bucked the global trend and retreated. The tech-heavy Nasdaq was down -2.3%, while the Magnificent Group of 7 stocks tumbled -7.3%. By contrast, the S&P 500 equal-weighed index rose 3.4% last month. Meanwhile, the S&P/TSX (+7.6%) led the global charge thanks to solid performance in the heavyweight gold (+23.5%) sector. Elsewhere, the MSCI EAFE (+4.5%) also advanced, while emerging market stocks (+5.4%) had another solid month and outperformed their developed market peers (+0.6%) by a wide margin.

In fixed income markets, treasury yields pushed lower even after solid growth and inflation data saw Federal Reserve officials pivot their focus to the inflation side of the dual mandate and advocate for a extended pause. Despite the hawkish-leaning developments, an erratic geopolitical and trade backdrop stoked demand for safe haven assets such as bonds. For the month, the Bloomberg US Aggregate Bond Index rose 1.6%, while the FTSE Canada Bond Universe gained 1.7%.

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