U.S. equities started off the week in positive territory, helped by technology stocks. Gold continued its climb as investors were concerned about the global economy and the Fed’s committee meeting. The Dow ended the day slightly up, the Nasdaq finished the session up 173 points. The TSX also rallied on Monday which was helped by the run in gold prices.
Tuesday took a turn as investors were sifting through earnings reports and concerns about the virus as global cases rose. In addition, gold dipped after hitting a high of $2,000 an ounce, breaking its rally. The S&P 500 slumped on the back missed earnings results from McDonald’s Corp. and 3M Co. By Tuesday’s close, the Nasdaq and Dow was down 134 and 206 points, respectively, while the TSX was slightly down on the day.
Markets reversed yesterday’s losses as the Federal Reserve left interest rates near zero and confirmed that it would continue to provide support as it is “the most severse economic downturn in our lifetime.” In addition, investors were still waiting on the details on a possible government stimulus program as the latest round is set to expire. By Wednesday’s close, all four major N.A. indexes ended in the green, with the Dow up 160 points.
U.S. Q2 GDP took center stage as it decreased at an annual rate of 32.9%, slightly better than estimates but still the largest fall since records begain in 1947. Almost all categories posted sharp declines, led by personal consumption expenditures which represent more than two thirds of U.S. economic activity. U.S. equities sank on the news.
source https://richarddri.ca/u-s-markets-struggled-following-u-s-gdp-report/
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