Global Asset Allocation Team Market Update – October 2026

Global equity markets (-1.3%) retreated in September. The S&P 500 edged modestly (-0.5%) lower, with robust results across the technology (+4.4%) sector offsetting widespread losses elsewhere across the benchmark. Market breadth was extremely weak – with the equal-weighed index losing -5%. The S&P/TSX declined -2.8% amid steep losses in the heavyweight energy (-4.2%) and materials (-7.5%) space. Gold stocks tumbled nearly -9%. Elsewhere, the MSCI EAFE fell -3.3% – while the MSCI gauge of emerging market stocks shed -0.8%.

Fixed income markets also generated negative results as continued signs of economic resilience and lingering inflationary pressures prompted a hawkish-leaning pivot at major central banks and sent global bond yields soaring higher. Treasury yields pushed to multi-year highs. The two-year treasury yield jumped 55 basis points to 4.89% – while the ten-year yield soared 53 basis points to 5.28% – its highest level since 2007. Yields on 30-year treasuries hit 5.63% – the highest in more than two decades. These moves spilled over into markets worldwide – sending a gauge of global bond yields to the highest since 2007. For the month, the Bloomberg US Aggregate Bond Index declined -2.6% – while the FTSE Canada Bond Universe shed -1.2%.

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