Downbeat data and sobering assessments from U.S. health officials and Fed Chair Jerome Powell dragged N.A. indexes down this week, as many investors begin bracing themselves for what could be a prolonged recovery. U.S. stocks were little changed Monday, with the Dow slightly down and the S&P flat, as investors weighed the benefits of reopening the economy against the prospect of surging coronavirus infections and renewed lockdowns. One bright spot, however, was the Nasdaq, which on Monday recorded its sixth consecutive winning session, its best streak since December.
N.A. markets were down on Tuesday as the U.S. Labor Department reported that its consumer-price index fell by 0.8% last month–the largest monthly decline in the index since December 2008, due to plunging demand for gasoline and services during the lockdowns. Also adding to the negative sentiment was testimony from top U.S. health officials, who warned during a Senate hearing of the dangers of reopening the economy without a national testing strategy. By Tuesday’s close, the Dow dropped more than 450 points, while the TSX surrendered 222.
On Wednesday, the Dow tumbled more than 500 points after Fed Chair Jerome Powell revealed growing alarm about the path to recovery, calling the outlook “highly uncertain and subject to significant downside risks.” He also stressed the need for more fiscal support.
Meanwhile sentiment for TSX stocks took a hit over news that Norway’s US$1-trillion wealth fund had blacklisted some Canadian energy companies for producing excessive greenhouse gas emissions. By Wednesday’s close, the TSX was down 378 points.
It was a volatile Thursday for U.S. markets as investors weighed weak economic data and rising tensions with China against the push to reopen local economies. The morning began with more dour U.S. data, with 3 million more initial jobless claims for the week ended May 9, bringing the total of newly unemployed to over 36 million. After sliding more than 400 points after the opening bell, the Dow mounted a furious comeback to end the day up more than 375 points, while the TSX ended flat.
source https://richarddri.ca/economic-health-realities-weigh-on-n-a-markets/
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