North American markets are extending gains as optimism around a potential U.S.-Iran agreement boosts investor sentiment, lowers oil prices and revives enthusiasm around artificial intelligence-linked investments. The S&P 500 reached fresh record highs as investors weighed easing geopolitical tensions alongside continued strength in technology earnings.
BNN Bloomberg spoke with Kelsey Keane, director of equity capital markets at National Bank of Canada, about the return of the AI trade, Canadian sectors positioned to benefit from data centre expansion and the economic indicators investors are monitoring.
Key Takeaways
- Investor sentiment turned sharply risk-on as reports of progress toward a potential U.S.-Iran agreement helped lift the S&P 500 to record highs.
- Strong technology earnings and renewed enthusiasm around AI investments continue to support elevated market valuations despite geopolitical uncertainty.
- AI-related investment flows are expanding beyond technology into power generation, infrastructure, commodities and real estate tied to data centre development.
- Canadian companies linked to electricity, grid infrastructure, copper, natural gas and uranium could benefit from rising energy demand tied to AI expansion.
- Investors are watching Canadian and U.S. employment data, central bank policy and CUSMA-related uncertainty for clues on economic growth and hiring trends.
Read the full transcript below:
LINDSAY: As we watch the S&P 500 hit all-time highs today on optimism the U.S. and Iran are nearing a peace deal, Bloomberg is reporting Iran is evaluating a new proposal from the U.S. that would include a gradual reopening of the Strait of Hormuz and a lifting of the American blockade on Iranian ports. Joining us now is Kelsey Keane, director of equity capital markets at National Bank of Canada. She joins us in studio. Always great to have you.
KELSEY: Thank you for having me.
LINDSAY: What do you make of what we’re seeing in the markets today? It seems like quite a rebound. Is this something to get excited about or more volatility?
KELSEY: We’re certainly seeing a real risk-on tone in the markets, and that’s been going on for the last couple of days, especially on the back of announcements around a potential peace deal with Iran. A lot of this optimism is being led by the technology sector, specifically in the U.S.
LINDSAY: Led by the technology sector — that’s what I wanted to get into. There’s renewed optimism around AI. Do you think tech stocks are adequately pricing geopolitical risks tied to the conflict right now?
KELSEY: We’ve seen stock markets react in swings over the last few months as this conflict has unfolded. What has helped validate some of these valuations is strong earnings. That is adding to the optimism. It’s not fully just on the back of good news from the U.S. president.
LINDSAY: A lot of those strong earnings came before the conflict with Iran really escalated. We’re not seeing the full effects of that yet. Do you think next quarter the big technology companies posting strong results will continue to do so?
KELSEY: I think the market is certainly expecting that. We’re seeing large fund flows into AI thematic ETFs, so there is a lot of optimism around the sector. One of the fascinating things about this thematic is that we don’t know how big the potential growth could be. It’s extending beyond technology stocks. Money is flowing into infrastructure, power and real estate to build out the connectivity around data centres and provide the power needed for these AI companies.
LINDSAY: You also like sectors such as energy, infrastructure, commodities and real estate tied to AI buildout. Tell me more about some of the sectors you like before we get into where you’re more cautious.
KELSEY: Absolutely. If we look at Canada, there are a lot of energy-rich publicly listed companies that could benefit. Anything tied to meeting growing power demand stands to gain because we know how much energy these data centres will require. Then there is the infrastructure side. Many of these data centres still need to be built. We’re seeing announcements and IPOs in the U.S., and we’re seeing more discussion around potential buildouts in Canada, including whether data centres could be developed in Calgary. There’s also a real estate component because these data centres need undeveloped land connected to the power grid. There are several public companies that could benefit from those tailwinds.
LINDSAY: Let’s get into some of the sectors you’re staying away from right now given the volatility.
KELSEY: Specifically within the AI thematic, software-as-a-service businesses are among the most disrupted because people are acknowledging some of these services can be done more efficiently by AI models. Those companies are struggling a bit. You could argue some valuations are overdone, although there is still value in companies with strong data assets.
LINDSAY: When it comes to software companies, you say some could still be valuable if they have important customer data. Can you explain what you mean by that? Some companies may become redundant while others survive this transition.
KELSEY: The companies with valuable customer data will likely remain important. If a business has proprietary data that helps companies better understand their customers, that can still be highly valuable. Historically, in public markets, we’ve seen consolidation around companies with those types of assets.
LINDSAY: Customer trends and information like that?
KELSEY: Exactly.
LINDSAY: Canadian employment data is out Friday. What are you watching for?
KELSEY: What we’ve been seeing is hiring in both Canada and the U.S. has been slow to pick up. There’s been a lot of uncertainty, so companies are holding back on major investment decisions, especially around labour. We’ll be watching whether unemployment remains stable, whether growth improves and what that could mean for central bank policy.
LINDSAY: Is some of that tied to anticipation around CUSMA renegotiations this summer? Is that contributing to slower growth?
KELSEY: Definitely. CUSMA is adding to the uncertainty right now. Businesses are trying to assess the outlook for growth and how trade negotiations could affect specific sectors, especially the auto industry.
LINDSAY: We’ll leave it there. Kelsey Keane, always appreciate you coming into the studio. Thank you.
KELSEY: Thank you so much.
LINDSAY: That was Kelsey Keane, director of equity capital markets at National Bank of Canada.
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This BNN Bloomberg summary and transcript of the May 6, 2026 interview with Kelsey Keane are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
