--- title: August 7, 2026 - Course adjustment description: The Fed fine-tunes its message, risk appetite returns to the markets and the endgame is taking shape in the Strait of Hormuz image: https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg --- [![iA Groupe financier - Facebook](https://mcmahon.ia.ca/hubfs/Commun/logos/inverse/logo-i-a-horizontal-inverse-fr.png)](https://ia.ca/individuals) Toggle navigation [Macro playlist](https://mcmahon.ia.ca/en/september-11-2026-eye-for-an-eye) [About us](https://mcmahon.ia.ca/en/about-us) [Subscribe to the newsletter](https://mcmahon.ia.ca/en/newsletter-subscription) [fr](https://mcmahon.ia.ca/7-août-2026-ajustement-de-trajectoire) # Macro Playlist The economic ideas driving markets. Every week, Sébastien Mc Mahon and his team deliver their carefully selected economic analyses and market outlooks. ## August 7, 2026 - Course adjustment x Partager l'édition via Copy link LinkedIn X ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/animated_images.svg) ## 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 [Download slides](https://mcmahon.ia.ca/hubfs/Hebdo_20260807_EN.pdf) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/vital_signs.svg) ## 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. ![AI Trade vs Market EN](https://mcmahon.ia.ca/hs-fs/hubfs/AI%20Trade%20vs%20Market%20EN.png?width=800&height=600&name=AI%20Trade%20vs%20Market%20EN.png) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/brand_awareness.svg) ## New Releases Read our latest publications ### Macro & Strategy Monthly - August 2026 « When the Levee Breaks » - When excess borrowing meets excess savings [Read here](https://files.ia.ca/-/media/files/gestion-mondiale-dactifs/content/2026/20260804/2026-08_monthly-macro-strategy_fr.pdf) ## Soundtrack This week, Led Zeppelin joins the macro playlist ! ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/cards_star.svg) ## Featured on Air Quick access to our latest media appearances ### 'I'd rather be independent': Trump on CUSMA BNN Bloomberg – July 29, 2026 [Watch](https://www.bnnbloomberg.ca/video/shows/the-close/2026/07/29/id-rather-be-independent-trump-on-cusma/) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Sebastien_McMahon.png) ## Sébastien Mc Mahon Chief Economist, iA Financial Group ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Etienne_Bergeron.png) ## Étienne Bergeron Economist, iA Financial Group [About the team](https://mcmahon.ia.ca/en/about-us) ## Archives 2026 September - [September 11, 2026 - Eye for an eye](https://mcmahon.ia.ca/en/september-11-2026-eye-for-an-eye) - [September 4, 2026 - Risk management](https://mcmahon.ia.ca/en/september-4-2026-) August - [August 28, 2026 - Breaking point](https://mcmahon.ia.ca/en/august-28-2026-breaking-point) - [August 21, 2026 - The U.S. Treasury Under Pressure](https://mcmahon.ia.ca/en/august-21-2026-the-u.s.-treasury-under-pressure) - [August 14, 2026 - Negotiation Blitz](https://mcmahon.ia.ca/en/august-14-2026-negotiation-blitz) - [August 7, 2026 - Course adjustment](https://mcmahon.ia.ca/en/august-7-2026-course-adjustment) July - [July 31, 2026 - Loss of credibility](https://mcmahon.ia.ca/en/july-31-2026-loss-of-credibility) - [July 24, 2026 - Oil and Tariff](https://mcmahon.ia.ca/en/oil-and-tariffs) - [July 17, 2026 - Inflation surprise](https://mcmahon.ia.ca/en/july-17-2026-inflation-surprise) - [July 10th, 2026 - War and Peace](https://mcmahon.ia.ca/en/july-10th-2026-war-and-peace) - [July 3rd, 2026 - Trump's world](https://mcmahon.ia.ca/en/july-3rd-2026-) June - [June 26, 2026 - The fall of the loonie](https://mcmahon.ia.ca/en/june-26-2026-a-hike-in-july) - [19 June 2026 - A new era](https://mcmahon.ia.ca/en/19-june-2026-a-new-era) - [June 12 2026 - Stay the course](https://mcmahon.ia.ca/en/june-12-2026-stay-the-course) - [June 5, 2026 - Recalibration at the BoC](https://mcmahon.ia.ca/en/june-5-2026-recalibration-at-the-boc) May - [May 29, 2026 - Earnings and recessions](https://mcmahon.ia.ca/en/may-29-2026-earnings-and-recessions) - [May 22, 2026 - Downbeat Canada](https://mcmahon.ia.ca/en/may-22-2026-downbeat-canada) - [May 15, 2026 - Inflation and AI](https://mcmahon.ia.ca/en/week-ending-may-15-2026) ![mail](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/mail.svg) ## Stay informed Get the Macro Playlist delivered straight to your inbox every week and stay up to date on the trends shaping the markets. [Subscribe to the newsletter](https://mcmahon.ia.ca/en/newsletter-subscription) | [Follow us](https://mcmahon.ia.ca/en/about-us) | | --- | | [français](https://mcmahon.ia.ca/7-août-2026-ajustement-de-trajectoire) | | --- | © 2026 Industrial Alliance Insurance and Financial Services Inc. – iA Financial Group. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Sébastien Mc Mahon", "url" : "https://mcmahon.ia.ca/en/author/sébastien-mc-mahon" }, "dateModified" : "2026-08-07T17:29:32.628Z", "datePublished" : "2026-08-07T17:29:25.000Z", "headline" : "August 7, 2026 - Course adjustment", "image" : [ "https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg" ], "mainEntityOfPage" : { "@id" : "https://mcmahon.ia.ca/en/august-7-2026-course-adjustment", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://mcmahon.ia.ca/hubfs/iafg-bimi%20300x300.png.png" }, "name" : "Industrielle Alliance, Assurance et services financiers inc et ses filiales." } } ```