Market View

DeepSeek – the Chinese artificial intelligence (AI) startup announced a more competitive, cheaper, more efficient generative language model, putting tremendous pressure on the market, especially the technology and utilities sectors. On the other hand, the Bank of Canada announced another interest rate reduction by 25 basis points, marking a sixth consecutive interest rate cut, but slowed the pace of the easing cycle. The Canadian dollar was 68.97 cents USD. The U.S. S&P500 ended the week down 0.8%, while the TSX was up 1.4%.

A lot more greens this week than reds. Technology and materials gained 5.0% and 3.3%, respectively. Real estate and financials added 1.4%, each, while consumer discretionary edged up by 1.0%. Industrials slightly gained 0.3%. Energy and consumer staples ended the week down 1.3% and 0.5%, respectively. The most heavily traded shares by volume were Toronto-Dominion Bank, Enbridge and Royal Bank of Canada.

5 from 5i

Here are five reads we found interesting last week:

• DeepSeek AI is next year’s nightmare for Nvidia, today, written by Luke Kawa of Sherwood News
• What Makes a Good Index Fund?, by Brendan McCann of Morningstar
• Do You Need to Own International Stocks?, published by Nick Maggiulli of Of Dollars and Data
• Nobody Knows Anything, DeepSeek Edition, written by Barry Ritholtz of Ritholtz Wealth Management LLC
• The Patient Investor: A Philosophy of Building Things That Last, published by Frvalue of Building Things That Last

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.