August 7, 2026 - Course adjustment

Opening Track

The week in review

This week, the Fed fine-tunes its message, risk appetite returns to the markets and the endgame is taking shape in the Strait of Hormuz

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Top of the Charts

Chart of the week | AI is NOT the market in 2026

For months, the easy story was: AI is the market. The chart says: not quite.
Semiconductors were up around 70% in three months, then fell about 20% in July. Meanwhile, global equities kept most of their gains. That tells us the market is not just leaning on one theme.

AI has helped, no doubt. But so have improving earnings, a better global macro backdrop, and broader sector participation.

We remain constructive on AI, especially given the scale of capex still ahead. But leadership is evolving. The latest earnings from Microsoft and Amazon suggest hyperscalers are back in favour, while the lower end of the tech stack, especially semiconductors, is still under pressure. That is not unusual. With major new technologies, the profit pool eventually moves closer to the end-user over time.

So yes, AI is important. But in 2026, it is not the whole market.