While the global equities market recorded positive returns in the first quarter of 2026, a rebound seen in April was driven by only a few corporations, according to a new report from FTSE Russell.
The FTSE all-world index posted a 6.8 per cent return in a quarter defined by the impact of geopolitical uncertainty and inflation expectations. The positive return was credited to the momentum of 13 equities related to the artificial intelligence theme, which provided nearly 50 per cent of the return.
Read: Canadian DB plans demonstrate resilience amid AI strain on equity market, global uncertainty: expert
In April, AI companies largely beat estimates during earnings season, but the market sold off on these announcements due to concerns about tangible links between AI capex and revenue growth, which the report noted may lead to even less homogeneity within the technology industry going forward.
Technology equities have exhibited asymmetrical returns during the ongoing Middle East crisis, which the report found as a defensive characteristic in the downturn and leading in the recovery.
Meanwhile in March, the equities market largely conducted a risk-off period with mixed returns for defence industry and investors favouring what the report described as defensive options in energy, mega-cap equities, technology, utilities and listed infrastructure.
Looking ahead, the report flagged the upcoming United States-Mexico-Canada Agreement review as a key event with the potential to unlock delayed investment or create new volatility as the three countries hash out a new version of the treaty.
Read: Asset owners reviewing portfolio resilience amid geopolitical shocks: expert