Podcast
Why Are Markets at All-Time Highs?
Will Simpson and Greg Wise
June 27, 2025
We break down the 3 key forces driving markets to new all-time highs — in spite of everything going on in the world.
Markets finished the week solidly in the green, with the S&P 500 climbing 2.7% in CAD terms and hitting fresh all-time highs. But this wasn’t just a U.S. show; global markets showed up too, with Japan leading the charge up 5.0% and the MSCI ACWI ex U.S. matching the Nasdaq’s 3.3% gain.
Energy stocks in both Canada (-2.5%) and the U.S. (-4.1%) got smoked as crude oil tumbled back to around US$65/bbl. That oil reversal tells the story of the week’s geopolitical whiplash. Tensions flared after U.S. airstrikes hit Iranian nuclear facilities, raising fears over the Strait of Hormuz, but oil prices cooled just as quickly as they spiked. Bond markets also had a strong week with yields pulling back, while gold sold off, down about $100/oz. Add a falling U.S. dollar, back to levels not seen since early 2022, and it’s clear investors rotated into risk and away from most safe havens.
Just when things were ending on a high note, Trump fired off a Friday afternoon tweet torpedoing trade talks with Canada over our digital services tax. He threatened new tariffs and slammed Canada as a “very difficult country to TRADE with.” The TSX turned lower on the back of that headline, but still managed to finish the week up 0.8% at the time of writing.
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