This is the midday brief for Thu, Jul 2, 2026. View latest

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Midday Edition. Thursday, July 2, 2026

Curated market context for passive investors.

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$44.94
-0.35%

Headline

Technology weakness and emerging-market chip concerns push XEQT lower at midday.

XEQT is reopening after a Canadian market holiday, so today's move includes price discovery from markets that traded while the TSX was closed. The fund declined 0.35% by midday as weakness in U.S. technology and emerging market equities outweighed gains in international developed markets. The U.S. sleeve fell 0.62%, led by a 2.86% drop in technology stocks as chipmaker concerns spread from Asia into North American trading. International developed markets rose 0.50%, with the UK, Germany, and Switzerland gaining 2.46%, 2.52%, and 2.24% respectively on softer U.S. employment data that reduced rate-hike expectations. Emerging markets fell 4.00%, with South Korea down 4.18% amid a sharp selloff in semiconductor stocks.

How large is this afternoon's move?

Typical day · This afternoon's -0.35% move is 0.5× the 20-day average move.

This scale measures size, not what to do. Larger moves are a normal part of holding a global all-equity fund.

The Regions

  • Canada

    24.87% of XEQT

    • XIC.TO
    -0.04% -0.01 pts from XEQT

    The Canadian sleeve was essentially flat at minus 0.04%, reflecting mixed forces within the domestic market. Materials gained 1.85%, supported by gold strength, while financials declined 0.73% and industrials fell 1.09%. Energy was unchanged, offering little offset to weakness in banking and broader industrial exposure.

    Canada market region icon

  • United States

    45.55% of XEQT

    • XTOT.TO
    • ITOT
    -0.62% -0.28 pts from XEQT

    The U.S. sleeve fell 0.62% as technology stocks dropped 2.86%, erasing gains in health care and financials. Weaker-than-expected jobs data prompted defensive positioning in rate-sensitive sectors, yet technology's sharp decline prevented broader market resilience. Health care rallied 2.23% and financials rose 1.19%, but their combined contribution could not offset the technology drag.

    United States market region icon

  • Intl Developed

    24.37% of XEQT

    • XEF.TO
    +0.50% +0.12 pts to XEQT

    International developed markets advanced 0.50%, led by strong gains across continental Europe and the UK. The UK rose 2.46%, Spain rallied on softer rate expectations, Germany gained 2.52%, and Switzerland rose 2.24%. Japan was nearly flat at minus 0.18%, while the euro's strength against the Canadian dollar provided additional tailwind to these equity moves.

    Intl Developed market region icon

  • Emerging Mrkts

    5.01% of XEQT

    • XEC.TO
    -4.00% -0.20 pts from XEQT

    The emerging markets sleeve tumbled 4.00%, dragged by a severe selloff in South Korea and semiconductor-exposed markets. South Korea fell 4.18% on AI demand concerns centered in chipmakers Samsung and SK Hynix. Taiwan declined 0.99% and China fell 1.48%, while India and South Africa offered modest support with gains of 0.59% and 1.91%.

    Emerging Markets market region icon

Colored bars represent biggest contributors to XEQT's move this afternoon (threshold = ±0.1 percentage points). Returns are daily ETF price moves for tracked regional or sector categories and may differ slightly from raw index movements.

The Hold Line

The session reflects a divergence between global growth and technology. Emerging markets bore the brunt of a regional chip rout centered in South Korea, while international developed economies, particularly Europe and the UK, rallied on reduced expectations for Federal Reserve rate increases following weak U.S. jobs data. The U.S. sleeve itself suffered sharp technology losses despite the softer labor market, underscoring that equity markets weigh competing signals. For a long-term XEQT holder, this pattern illustrates how sectoral concentration can override macro tailwinds; one week's growth catalyst can become the next week's headwind for technology-dependent markets.

Signals

  • 01

    South Korean chip selloff weighs on EM

    South Korea's benchmark index fell 4.18% as chipmakers tumbled on concerns about oversupply in AI computing hardware. For XEQT holders, this demonstrates how concentrated emerging market volatility in one country and sector can amplify portfolio swings; the emerging markets sleeve contributed negative 0.200 pp to today's total return.

  • 02

    U.S. tech decline vs defensive sector gains

    The U.S. VIX rose 1.15% to 16.78 as technology stocks fell sharply, yet U.S. health care and financials gained on softer employment data. This split within the largest sleeve reflects conflicting signals: growth anxiety on one hand, reduced rate expectations on the other, with neither clearly dominant in midday trading.

  • 03

    Europe and UK rally on rate relief

    International developed markets rose 0.50% as the UK, Germany, and France all gained 2.46% or more on softer U.S. jobs data that reduced Federal Reserve rate-hike expectations. This stands in stark contrast to emerging market weakness and the U.S. decline, showing that mature equity markets benefited most from the global monetary reprieve.

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Jun 4 to Jul 2 · $45.06 → $44.94

-0.27%