Market Outlook - May 2026

The outlook for markets remains constructive, supported by steady earnings growth and improving participation beneath the surface. In the U.S., market gains have broadened beyond just a handful of large technology names, with more companies contributing to overall performance, an encouraging sign that the rally is becoming more balanced. At the same time, companies continue to deliver solid earnings, with expectations for future growth remaining strong. While valuations are elevated by historical standards, this has been supported by consistent earnings strength, which continues to provide a solid foundation for equities.

In Canada, the picture is somewhat different but still supportive. The TSX remains more tied to sectors like energy and financials, and recent strength in commodity prices has helped support earnings expectations in these areas. As a result, companies with stable earnings, reasonable valuations, and dividend income continue to play an important role in our portfolio. At a broader level, both the U.S. and Canadian markets remain in upward trends, although the pace of gains and day‑to‑day moves can feel uneven. Overall, the combination of steady economic growth, solid corporate earnings, and broader market participation continues to support a positive backdrop for investors even as headlines and short‑term volatility persists.

If you would like to receive a full copy of our May 2026 market commentary, please email us at msbwealth@nbpcd.com