It was a Tuesday to remember for investors as U.S. stocks wrapped up their best quarter in more than 20 years, a remarkable turnaround after the coronavirus pandemic brought global economies to a halt in March and April. The S&P 500 finished Q2 up 20%, its biggest percentage gain since Q4 of 1998, while the Dow climbed 18%, its best quarterly performance since 1987. The rally has cut the indexes’ losses for the year to 4% and 10%, respectively. While those numbers are impressive, the Nasdaq Composite outshined them all, rising 31% in the quarter and 12% year to date. Meanwhile, the TSX recorded its best quarter since the global financial crisis, surging 16%.
There was also good news for oil prices on Tuesday, which approached the $40 per barrel mark, putting oil on track for its largest quarterly percentage gain in 30 years. The rebound comes after an historically rough Q1, which saw the biggest quarterly percentage drop going back to 1983.
It’s been a strong week for markets thus far. U.S. stocks were up Monday on news of a rebound in previously owned homes, suggesting a turnaround in the U.S. housing market, while TSX was up 201 points, as rising oil prices lifted the energy sector. Following Tuesday’s strong performance, the S&P and Nasdaq closed higher Wednesday on news that the Institute for Supply Management’s June manufacturing index rose to 52.6 from 43.1 in May, outpacing analysts’ expectations. The Dow was slightly off Wednesday, while the TSX was closed for Canada Day.
U.S. markets started off strong Thursday on upbeat jobs data showing 4.8 million jobs added in June, bringing the unemployment rate down to 11.1%. However, permanent job losses keep rising as the “core” unemployment rate jumped to 5.9% in June, a number that’s expected to rise as more businesses close for good. By Thursday’s close, the Dow had added 92 points, the S&P gained 14, the TSX climbed 107, and the Nasdaq added 53 points to hit a new record close.
source https://richarddri.ca/optimism-high-as-n-a-markets-finish-best-quarter-in-years/
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