Insights 
VT 
US stocks achieved record highs, with a strong buying trend in the morning. There was a temporary decline when trade talks ended between the US and Canada, causing tariff concerns.
The S&P 500 briefly fell more than 40 points, but gains were secured by day’s end. The closing changes in US equity markets were: S&P 500 up 0.5%, Nasdaq up 0.5%, Russell 2000 unchanged, DJIA up 1.0%, and Toronto TSX Composite down 0.5%.
Weekly Performance Recap
Palantir experienced a notable decline, ending down 9.4% after a late-day fall. For the week, the S&P 500 rose by 3.4%, Nasdaq increased by 4.2%, Russell 2000 gained 2.9%, and Toronto TSX Composite grew by 0.6%.
These performances resulted in record weekly closes for both the S&P 500 and Nasdaq.
What we’ve just seen is a week when market direction has been largely dictated by confidence in resilience, despite interruptions from recurring tariff worries. Judging by the way the S&P 500 initially sank during the session—dropping more than 40 points at one point—investors clearly responded to news around the abrupt end of talks with Canada. The suggestion of fresh barriers to trade temporarily shook sentiment. Even so, by market close, buying pressure returned strongly enough to reverse the dip.
In practice, this means that broader investor appetite hasn’t dulled, particularly in areas with high exposure to growth sectors. Technology led again. The Nasdaq climbed in step with the S&P 500, both making new weekly records. We noticed the Dow Jones performing more robustly on the day, helped possibly by more direct interest in traditional industries that may not be as vulnerable to shifting global policies.
Meanwhile, the Russell 2000, which better reflects confidence in smaller capitalised companies, stayed flat. That could indicate hesitancy among traders to reach too far beyond the well-known giants while fiscal conditions remain subject to international developments. The underperformance of the Toronto Composite suggests local stocks have not escaped concerns arising from cross-border talks. Canadian exposure to trade risks stayed top-of-mind.
Market Sentiment And Strategy
As a side note, we did see Palantir take a sharp hit late in the session, with its decline reaching nearly 10% by the bell. Moves of that magnitude, particularly so late in the day, can tie back to shifts in institutional positioning or information flows reacting to recent disclosures. For us, this reinforces the need to monitor afternoon volatility more closely, especially in software or data-related tickers, where sentiment can turn quickly.
From a trading approach, the key takeaway here lies in the divergence between headline-driven downturns and broader bullish momentum. The weekly gains across the major US indices—3.4% for the S&P 500 and 4.2% for Nasdaq—are not minor rebounds but stronger indicators of persistence in institutional interest. Short-term pullbacks, such as the one triggered by trade frictions, have not reversed positioning overall.
Volatility may rear up again over the coming sessions. This week proved that confidence can return swiftly when downside catalysts lack staying power. For strategy, we continue to observe intraday pivots closely, especially where they intersect with geopolitical headlines or policy talks. Price action in early sessions can often provide the better tells. From what we’ve seen, buyers are standing ready, not in retreat.
In several areas, options activity also suggests accumulation is accelerating. While there are pockets of rotation under the surface, directional sentiment remains weighted toward the upside. Relative strength in sectors with recent momentum could offer setup potential in coming days, particularly where weekly closes have marked new breakouts.
An adaptive stance—reacting quickly to opening gaps or late-day reversals—is more useful right now than static positioning. We’re seeing momentum but also hour-to-hour sensitivity to news. Accuracy matters more than boldness.
