📊 AI Hype Cools, Resources Rise

Good Morning Investors,

Sector performance was broadly positive but led by technology and resources. Semiconductor and broader information technology stocks outperformed after chipmakers and storage suppliers issued upbeat guidance, pushing sector benchmarks sharply higher. Resource linked names rallied, with the TSX Global Mining Index up over three percent as supply pressure headlines, including rising aluminum premiums added fuel to the move.

Sentiment toward the AI trade remains divided. Capital continues to flow into leading AI platforms, but a growing chorus of analysts is warning of valuation froth and the risk of an eventual reset in smaller tech names.

The combination of robust earnings momentum and policy optimism supports near term upside, but the current market tone favors selectivity, especially in small cap technology and speculative growth segments.

Matthias Schneider
Editor at Analytica Investor