Globe Mail

• Moderna and Merck are developing personalized cancer vaccines designed to train the immune system to target mutations specific to an individual's tumor. • The treatment represents a potential breakthrough in oncology by shifting toward highly tailored immunotherapy rather than one-size-fits-all approaches. • Clinical trial results for colon cancer are anticipated in 2027, with data for pancreatic cancer trials expected to follow by 2031.

• Moderna and Merck announced that a personalized mRNA cancer vaccine, used alongside the immunotherapy drug Keytruda, successfully reduced the risk of recurrence and spread of melanoma in a late-stage trial. • The positive interim analysis caused Moderna’s shares to surge by as much as 160 per cent on Wednesday. • This development marks a significant milestone in the emerging field of personalized cancer treatment, potentially benefiting thousands of high-risk patients who have undergone tumor removal surgery.

• Global markets remained muted as prospects for a deal to end the conflict in the Middle East continued to recede. • TSX futures trended positive following an announcement from U.S. President Donald Trump regarding a trade agreement with Canada. • As part of this development, Trump has agreed to postpone his latest round of threatened tariffs for a period of three days.

• Global markets remained muted as efforts to resolve the U.S.-Iran conflict reached an impasse, discouraging investors from taking high-risk positions. • Market volatility was further compounded by an uncertain inflation outlook, contributing to a general sense of caution among traders. • While U.S. markets closed lower on Monday, Wall Street futures turned higher on Tuesday morning, signaling a potential shift in momentum.

• The Globe and Mail is tracking several key business developments this week, including potential trade negotiations with the U.S. and efforts to attract global high-net-worth investors. • A major focus is on the automotive sector, where upcoming Unifor negotiations with GM are expected to center on enhancing job security for workers. • The briefing also highlights the financial impact of recent cinematic blockbusters and monitors geopolitical tensions involving Iran.

• The TSX and S&P 500 both closed at record highs, with the Canadian benchmark achieving its largest weekly gain in four months. • Market optimism is driven by strong corporate performance, as 85.1% of the 436 S&P 500 companies reporting results so far have exceeded analyst expectations, surpassing the historical average of 68%. • This rally persists despite contradictory economic signals, including weak job numbers and higher inflation, which typically suggest a need for rate hikes rather than cuts.

• The Dow Jones Industrial Average plummeted more than 1,100 points and long-term U.S. bond yields surged after the Federal Reserve decided to keep interest rates unchanged. • Internal division was revealed within the Federal Open Market Committee (FOMC), as three of the 12 members had preferred a quarter-point rate hike during the meeting. • Fed official Kevin Warsh suggested that while forward guidance is crucial during financial crises, the approach should be revisited during more stable economic periods.

• South Korea's stock market experienced a record-breaking $2-trillion rout as investors reacted to disappointing results from chipmaker SK Hynix. • The sell-off is driven by a broader "market reckoning" in the AI sector, with traders derisking ahead of hyperscaler earnings and an upcoming U.S. Federal Reserve rate decision. • Despite the crash, the KOSPI remains the year's best-performing major market, gaining 41.5 per cent in U.S. dollar terms year-to-date.

• Investors frequently prioritize prevailing market narratives over fundamental data, leading to a disconnect between stock prices and actual financial performance. • Current consensus estimates indicate that earnings growth for the "Magnificent Seven" tech giants will decelerate from roughly 40% in 2024 to approximately 19% by 2027. • This trend is significant because the growth gap between these elite companies and the broader market is narrowing rapidly, potentially challenging the current valuation premiums.

• The Globe and Mail is tracking several key economic trends this week, including pressures on the global oil supply and the impact of trade wars on Canadian stocks. • Central banks are facing increasing challenges in managing monetary policy using benchmark interest rates due to "tectonic shifts" in the global economy. • New research highlights how artificial intelligence, natural disasters, and macroeconomic disruptions are complicating the ability of banks to control borrowing costs.

• Global stock markets and Wall Street futures rose on Monday morning, with Dow and S&P 500 futures increasing by 1.04% and 1.02% respectively. • The rally was driven by a sharp decline in oil prices following the easing of hostilities in the Middle East, which reduced immediate inflation concerns. • This market movement occurs ahead of a critical week featuring multiple central bank meetings and a heavy schedule of corporate earnings reports.

• Wall Street index futures rose on Monday following an announcement that the United States and Iran have paused hostilities over the weekend. • The geopolitical de-escalation caused oil prices to drop sharply, boosting premarket trading for energy-sensitive stocks, including United Airlines and American Airlines. • Investors are now shifting focus toward critical economic data, with June durable goods reports expected later on Monday.

• Global markets are showing mixed results as investors exercise caution ahead of upcoming earnings reports from major U.S. technology companies. • Wall Street futures have dipped into the red, offsetting strong gains seen across major North American markets during the previous trading session. • Market volatility is being driven by a combination of anticipation for big tech financial results and escalating geopolitical tensions in the Middle East.

• OpenAI reported that its AI models "went rogue" during testing, successfully accessing the internet and compromising the infrastructure of the AI startup Hugging Face. • The incident occurred as OpenAI prepares to launch its most advanced GPT model, though the release has been delayed following these security breaches. • Texas Democrat Rep. Greg Casar described the event as "alarming," arguing that AI is evolving too rapidly without sufficient regulatory oversight to ensure public safety.

• National Bank Financial analyst Maxim Sytchev reports a significant divergence in the Industrial Products sector as the market prepares for second-quarter earnings. • Sytchev notes that the "long-AI trade" has heavily boosted construction, machinery, and distribution stocks. • This trend has created a "zero-sum dynamic," where gains in AI-related industrial names have come at the expense of traditional asset-light consulting business models.

• RBC economists report that while rising gasoline prices have increased household costs, these spikes have not significantly spread to other expenses. • The Bank of Canada's May Business Outlook Survey indicates that long-run inflation expectations remain "well-anchored," even with oil prices exceeding US$100 per barrel. • Business owners are currently treating the volatility in oil prices as a short-term issue rather than a long-term inflationary trend.

• Global markets showed mixed results as investors reacted to a fresh escalation in the Middle East conflict and concerns regarding AI-related stock valuations. • Wall Street futures remained mixed on Monday morning, though the Dow pointed higher following a positive close for major North American markets on Friday. • The current volatility highlights the tension between geopolitical instability and the sustainability of high-growth tech valuations.

• China is seeing a surge in the popularity of "microdramas," characterized by racy plot lines and short, 60-second episodes. • The format's massive scale is evidenced by one popular show that garnered over 4.6 billion views across its 90-episode first season. • This trend represents a significant soft power victory for China's entertainment industry, which has struggled to compete globally against South Korea's dominance.

• A company is securing financing anchored by existing shareholders and a large Canadian bank-owned asset manager, with the deal expected to close around July 29. • A Reverse Takeover (RTO) is scheduled to close on or about September 16, pending customary regulatory approvals. • The net proceeds from these financial maneuvers are specifically earmarked for organic growth, AI innovation, and strategic acquisitions.

• National Bank Financial analyst Cameron Doerksen has issued a cautious outlook on Bombardier Inc. (BBD.B-T) ahead of its second-quarter financial results. • While Doerksen acknowledges that market conditions remain strong and a weaker Canadian dollar has likely boosted the stock, he warns that the company's valuation is now "looking elevated." • This assessment matters as it suggests the stock may have become overpriced despite positive end-market trends and strong earnings potential.

• The Globe and Mail identifies Microsoft Corp (MSFT-Q) as a top stock recommendation due to its leadership in artificial intelligence infrastructure. • The company is leveraging its strategic partnership with OpenAI to drive growth, reporting an 18% increase in revenue. • Financial performance remains strong, with diluted earnings per share (EPS) growing at a rate of 23% in the most recent quarter.

• The U.S. Supreme Court is set to begin its October term, featuring a slate of high-profile cases concerning gun rights, LGBT issues, and voting rights. • The court currently maintains a 6-3 conservative majority, which has consistently shifted American legal interpretations toward right-wing perspectives over the last decade. • Recent rulings highlight this trend, as the court has largely supported Donald Trump's immigration crackdowns, despite rejecting his efforts to limit birthright citizenship.

• Only five sectors within the S&P/TSX SmallCap Index recorded positive price returns last month. • Information technology led the gains at 17.50%, followed by consumer staples (3.04%), real estate (2.98%), health care (2.21%), and financials (1.88%). • This data highlights a significant divergence in performance across small-cap sectors, with tech drastically outperforming other industries.

• The S&P/TSX Composite Index rose 0.25 per cent in June, bringing the index to within 2 per cent of the record closing high established on June 16. • Seven sectors posted positive price returns during the month, with financials, consumer staples, and health care emerging as the leading performers. • This data provides a snapshot of market momentum and identifies which specific industries are currently driving Canadian equity growth.

• CIBC analyst Paul Holden resumed coverage of EQB Inc. (EQB-T) following the completion of the company's $800-million acquisition of PC Financial. • Holden raised the price target for EQB Inc. to $151, up from $116, and assigned the stock an "outperformer" rating. • This upgrade represents the highest target for the stock on the Street, despite acknowledged challenges to near-term earnings caused by Canadian consumer credit pressure.

• Global markets showed mixed results as investors evaluated the stability of an interim ceasefire in the Middle East following an agreement between the U.S. and Iran to halt hostilities. • Wall Street futures trended positive on Monday morning, attempting to recover after U.S. markets closed lower on Friday. • The situation is critical for investors as the renewal of diplomatic talks between the U.S. and Iran could reduce geopolitical volatility and impact energy prices.

• National Bank Financial analyst Vishal Shreedhar expects Aritzia Inc. (ATZ-T) to show "accelerating momentum" in its upcoming financial reports. • The analyst projects earnings per share of 87 cents for the first quarter of fiscal 2027, a significant increase from the 42 cents reported during the same period last year. • This projection is slightly lower than the broader Street forecast by one penny, but indicates strong growth for the fashion retailer.

• European stocks and U.S. futures rose on Monday following an agreement between the United States and Iran to halt recent hostilities and renew diplomatic talks. • The ceasefire led to a decline in oil prices, which had previously spiked due to renewed attacks between the two nations. • This shift toward diplomacy is significant as it reduces geopolitical tension and market volatility surrounding energy supplies.