The first half of 2026 has delivered a fascinating mix of improving market sentiment, persistent economic uncertainty, and renewed appetite for capital formation. In this month’s episode of The Market This Month, Canadian Securities Exchange Director of Listings Development Anna Serin sits down with Stonecastle Investment Management portfolio manager Bruce Campbell to discuss the resurgence in IPO activity, rising investor participation, commodity markets, inflation, and opportunities emerging in the small-cap sector.

Recent weeks have seen several major companies move toward the public markets, while financing activity has remained robust across both Canada and the United States. At the same time, investors continue to navigate volatility driven by large capital raises, shifting sector leadership, inflation concerns, and evolving commodity trends.

Watch the video above, then read the transcript below.

IPO boom, volatility and summer opportunities

Anna Serin:Welcome to the June 2026 edition of The Market This Month. I’m Anna Serin, Director of Listings Development with the Canadian Securities Exchange.

Today we’re taking a closer look at what’s been driving markets over the past few weeks, particularly through the lens of Canadian public companies and the junior capital markets.

As we move into June, investors continue to navigate a fascinating mix of improving sentiment, persisting economic uncertainty, and renewed appetite for capital formation. While volatility remains a defining feature of the current market environment, investors are increasingly looking ahead to opportunities that may emerge in the second half of 2026.

Geopolitical tensions eased following progress toward ceasefire agreements in key regions, helping stabilize investor sentiment. Earnings season delivered a mixed but generally constructive picture, with many companies demonstrating resilience despite ongoing concerns around inflation and interest rates. At the same time, spikes in the VIX reminded investors that uncertainty remains very much a part of today’s investment landscape.

Despite these challenges, capital continues to flow into the market. Here at the CSE, we were pleased to welcome several new issuers, including Yokel.ai, along with resource-focused companies PureCore Metals, Flow Capital Corp. and Atlantico Energy Corp.

The financing market also remained active, demonstrating that investors continue to support compelling growth stories and quality management teams.

To help us break it all down, I’m joined once again by my co-host, Bruce Campbell, Portfolio Manager with Stonecastle Investment Management.

Bruce, thank you for joining us.

Bruce Campbell:Thanks for having me.

Anna Serin:Over the past month we’ve seen a large number of IPOs in both Canada and the United States. What does that tell us about market conditions and investor sentiment?

Bruce Campbell:We’ve certainly seen a lot of IPO activity, both companies that have already listed and others preparing to come public. We’re recording this just before the SpaceX IPO, which is expected to be one of the largest in history. We also have companies like Anthropic and OpenAI working through the process.

In Canada, we’ve seen companies such as Apotex enter the public markets as well.

What this really reflects is a trend we’ve been discussing for nearly a year: growing risk appetite and increasing access to capital. About 18 months ago, we started seeing smaller financings in the $10 million range. Those financings became larger, then larger still, and now we’re seeing truly significant capital raises.

The willingness of investors to fund new opportunities has clearly evolved.

Anna Serin:One thing we’re seeing at the CSE is renewed activity from technology companies. We haven’t seen this level of tech IPO activity in quite some time. Is that significant?

Bruce Campbell:Absolutely. For much of the last decade, Canada’s public markets have been dominated by other sectors. We saw many successful technology companies grow and eventually get acquired before reaching significant scale.

Now we’re seeing a new generation of technology companies emerging and accessing public capital. Canada remains a strong technology hub, and these new listings create exciting opportunities for investors who are willing to do the research.

Anna Serin:We’re also seeing significant participation from U.S. investors in Canadian financings.

Bruce Campbell:That’s definitely true. Twenty-four months ago many Canadian financings were largely domestic. Today we’re seeing much broader participation, both through public offerings and private placements involving U.S. investors.

That’s a healthy sign for capital markets.

Anna Serin:Markets have also experienced some notable volatility. How should investors interpret that?

Bruce Campbell:A lot of the recent volatility is tied to the size of these IPOs.

When investors receive allocations in a major offering, they often need to raise capital by selling other positions. That creates short-term volatility, particularly in sectors where investors are heavily concentrated.

Historically, these volatility spikes tend to be constructive over the longer term. While short-term market direction is always difficult to predict, periods of elevated volatility have often been followed by stronger returns over six- and twelve-month periods.

Anna Serin:Let’s talk about inflation, interest rates and commodities.

Bruce Campbell:Over the last several months we’ve seen inflation move higher, partly due to higher energy prices associated with geopolitical conflict. Interest rates have followed.

That has created a mixed environment for commodities. Gold and silver have faced some pressure, while copper and other base metals have benefited from continued technology demand and rising production costs.

We’re seeing a rotation within commodity markets rather than a broad move in one direction.

Anna Serin:What opportunities are you seeing in the small-cap space?

Bruce Campbell:The biggest story continues to be earnings growth.

We began seeing improving earnings trends in smaller companies during 2025, and those trends have continued through the first half of 2026. Investors have taken notice.

As long as economic conditions remain supportive, strong earnings growth should continue to drive performance.

At the same time, fundamentals become increasingly important as market cycles mature. Early in a cycle investors focus on potential. Later in the cycle, execution and financial performance matter much more.

Anna Serin:Before we wrap up, what will you be watching over the summer?

Bruce Campbell:Sector rotation.

We’re seeing changing leadership across IPOs, commodities, technology and earnings-driven stories. There is potential for significant sector rotation this summer, and investors should pay close attention to where earnings growth is accelerating and where capital is flowing.

That doesn’t guarantee a rotation will occur, but it’s something we’re watching closely.

Anna Serin:Bruce, as always, thank you for joining us. I look forward to seeing you in person next month.

Bruce Campbell:Likewise. Thanks for having me.

Anna Serin:And thank you for joining us for this edition of The Market This Month. We’ll see you again next month.

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