Week Ending July 19, 2026
Cyclicals Extend Gains as S&P 500 Tops 7,570 on Resilient Earnings
At a Glance
S&P 500
0
+0.6%
TSX Composite
0
+0.8%
NASDAQ
0
+0.9%
Russell 2000
0
+0.3%
VIX
0.0
-0.8pts
Sectors: risk-on
Style: growth
Hedging: neutral
Key Takeaways
Sectors: Financials and Energy led the tape as Q2 bank earnings beat estimates and Brent held above $80, while cyclical breadth reached its widest level since Q1; TSX outperformed on bank strength.
Style: Growth extended its edge over value as mega-cap AI capex commentary reaccelerated, though the valuation premium is now stretching toward two standard deviations above the 10-year average.
Hedging: VIX at 15.67 sits comfortably in the normal regime with the curve in contango, keeping protection costs cheap — institutions favor layering in tactical hedges rather than reducing equity exposure outright.
Previous Issues
View all →June 14, 2026
Financials Lead Equity Rally as Fed Pause Sparks Sector Rotation
June 7, 2026
Tech Rally Drives Markets Higher as Rate Cut Hopes Fuel Cyclical Rotation
May 31, 2026
Tech Leadership Drives S&P 500 to New Highs as VIX Stays Subdued
May 24, 2026
Tech Rally Lifts Markets as AI Earnings Impress, VIX Stays Calm