Tech Rally Continues and Trinidad Bonds show Strength

Tech Rally Continues as Trinidad Bonds and Equities Show Strength

April 24, 2026

Dave Dookie, Managing Director

• U.S. Technology Continues to Lead: The Nasdaq gained approximately 44% over the past year, driven by AI, semiconductor demand and cloud investment. The outlook for 2026 remains positive, though increasingly dependent on earnings delivery and valuation discipline.

• U.S. Equities Were Resilient:  The S&P 500 rose 0.56% and the Nasdaq gained 1.50%, while the Dow fell 0.44%. Technology continued to lead as investors focused on earnings and potential monetary easing.

• Europe Weakened While Asia Was Mixed: European equities retreated, with the FTSE 100 down 2.70% and Euro STOXX 50 down 2.88%. Asia was more resilient, led by Japan’s Nikkei (+2.12%), supported by exporters and technology shares.

• Trinidad and Tobago Equities Advanced: The TTSE Composite Index rose 2.04% and the All T&T Index gained 2.34%, led by gains in A.S. Bryden, NEL and Prestige Holdings, while improved trading values reflected stronger participation.

• Regional Emerging Market Credits: Trinidad and Tobago bonds continue to trade as a relatively defensive Caribbean credit, with yields tighter than weaker rated regional peers such as Barbados and Jamaica, reflecting stronger credit fundamentals.

• High Liquidity Supports Local Markets: Commercial banks held TT$4.04 billion in excess liquidity, supporting domestic asset valuations and financial stability, while attractive regional equity valuations underpin a more optimistic outlook for the Caribbean investors.

Global markets closed the week balancing resilient earnings, elevated commodity prices and persistent geopolitical uncertainty. Investor sentiment remained constructive, though market leadership stayed concentrated in technology and energy, while cyclical sectors lagged. Against this backdrop, U.S. technology continued to anchor global returns, while Caribbean markets benefited from improving domestic sentiment and supportive liquidity conditions.

The U.S. technology sector remains one of the strongest-performing areas of global markets, driven by accelerating artificial intelligence adoption, semiconductor demand, cloud infrastructure spending and productivity gains from digital transformation. The Nasdaq Composite has gained approximately 44% over the last twelve months, materially outperforming broader benchmarks as mega-cap technology and semiconductor companies continued to deliver strong earnings growth.

Semiconductors remain the core growth engine, supported by demand for AI chips, advanced memory and data center infrastructure. Software and cloud providers have also benefited from rising enterprise spending on automation and cybersecurity. For the remainder of 2026, the outlook remains constructive but increasingly selective, as markets shift from valuation expansion toward earnings validation. Continued AI monetization, strong capital spending and the prospect of lower interest rates later this year should remain supportive, though higher valuations may increase sensitivity to earnings disappointments.

Over the last five trading days, U.S. equities were mixed but resilient. The S&P 500 Total Return Index rose 0.56%, while the Nasdaq gained 1.50%, supported by technology leadership. The Dow Jones Industrial Average declined 0.44%, reflecting softer performance among industrials and financials. Technology and communications outperformed, while higher oil prices supported energy shares, with Brent crude closing at US$105.33 per barrel. Natural gas weakened during the week, though prices remain supportive relative to long-term averages.

European and UK equities underperformed as investors responded to rising energy costs and profit-taking. The FTSE 100 declined 2.70%, the STOXX Europe 600 fell 2.54%, while the Euro STOXX 50 dropped 2.88%. The CAC 40 and DAX fell 3.17% and 2.32%, respectively. Weakness was led by cyclicals and exporters, while concerns over inflation and the timing of ECB easing weighed on sentiment.

Asian markets were more resilient. Japan’s Nikkei 225 gained 2.12%, supported by exporters and industrial technology names. The broader Asia Pacific Index rose 1.20%, while Shanghai gained 0.70% and Hong Kong’s Hang Seng slipped 0.70%. Regional performance continued to benefit from Japanese strength and optimism around Asian technology supply chains.

In Trinidad and Tobago, the domestic equity market posted one of its strongest weeks this year. The Composite Index rose 2.04%, the All T&T Index gained 2.34%, and the Cross Listed Index advanced 1.14%. The SME Index surged 8.11%, while value traded on the TTSE rose 32.83% to TT$17.84 million, despite lower volume.

Market leadership was driven by A.S. Bryden (+18.11%), National Enterprises (+15.99%) and Prestige Holdings (+14.18%), while NGL declined 27.19%, weighing on the energy segment. Despite that pullback, broader sentiment improved, supported by attractive valuations and improving earnings expectations.

Trinidad and Tobago sovereign bonds continue to trade as a relatively defensive Caribbean credit, reflecting the country’s BBB-/Ba2 profile, solid external buffers and comparatively stronger macroeconomic fundamentals relative to many regional peers. Indicative offer yields remain attractive yet tighter than lower-rated Caribbean credits, with Trinidad sovereigns ranging from approximately 4.26% on the 2027, 5.35% on the 2031, 6.07% on the 2034, and 6.20% on the 2036, compared with Barbados at roughly 5.10% to 6.62% and Jamaica at 5.92% to 6.06% in longer maturities.

The relatively lower spreads underscore investor confidence in Trinidad’s credit quality and place its bonds closer to stronger regional defensive issuers than higher yield Caribbean credits. At the same time, Trinidad continues to offer a modest yield premium over higher rated Latin American sovereigns, preserving its appeal for investors seeking a blend of credit stability and carry within Caribbean fixed income markets.

In the domestic Fixed Income market, liquidity remained highly accommodative, with commercial banks closing the week with TT$4.046 billion in excess reserves, only marginally below the prior week’s TT$4.051 billion. Elevated excess liquidity continues to support demand for domestic fixed income assets, compress short-term yields and underpin financial system stability.

From a regional allocation perspective, Trinidad and Tobago continues to benefit from relatively attractive valuations, resilient dividend paying financial and conglomerate stocks, and supportive Caribbean credit spreads. Together these factors support a constructive medium-term outlook for balanced regional portfolios.

Overall, markets remain supported by strong earnings, abundant liquidity and resilient economic fundamentals, though elevated commodity prices and geopolitical uncertainty may drive intermittent volatility. We maintain a cautiously constructive outlook, favoring quality growth, selective diversification and continued attention to opportunities in Caribbean credit and Trinidad and Tobago equities.

About the author: Dave Dookie is the Managing Director of Waterloo Capital Advisors Limited, a Trinidad and Tobago based financial advisory firm specializing in investment management, capital markets and structured finance. He has advised governments, financial institutions, and energy companies on debt issuance, project financing, and strategic capital raising across the Caribbean. He holds degrees and advanced qualifications from the London School of Economics and Political Science (LSE) and the University of London and has completed advanced training in data science through the MIT Applied Data Science Program.

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