Week Ending April 12, 2026
Financials Lead Risk-On Rally as VIX Normalizes Below 20
At a Glance
S&P 500
0
+1.8%
TSX Composite
0
+2.1%
NASDAQ
0
+1.5%
Russell 2000
0
+2.4%
VIX
0.0
-2.8pts
Sectors: risk-on
Style: value
Hedging: underweight
Key Takeaways
Sectors: Financial stocks led broad-based cyclical outperformance as yield curve steepening benefits net interest margins, while defensive sectors lagged on risk-on rotation.
Style: Value factors dominated growth amid earnings season focus on profitability over revenue growth, with Canadian banks at compelling valuations versus US peers.
Hedging: VIX normalization below 20 suggests reduced hedging urgency, though credit spreads remain elevated warranting selective protection strategies.