U.S. stocks on Monday wrapped up their best month since April, continuing a rally fueled by Fed stimulus, signs of economic revival and hopes for a coronavirus vaccine. As of Monday, the benchmark S&P 500 had surged 35% since March, its largest five-month percentage gain since 1938. The index advanced 7% for August but finished off by 8 points on Monday. The TSX Composite closed down 191 points, weighed down by the energy sector, which fell by 3%.
Canadian and U.S. stocks ended higher on Tuesday with tech stocks once again leading the charge. Positive sentiment was fueled by data from the Institute for Supply Management, which showed U.S. manufacturing activity accelerated in August, growing for the third straight month.
A broad rally in U.S. stocks Wednesday sent the Dow above 29,000 for the first time since February, along with new closing records for the S&P and Nasdaq Composite. The rally was fueled in part by data showing the U.S. nonfarm private sector added more than 425,000 jobs in August, still well below an expected gain of more than 1 million jobs. By Wednesday’s close, the Dow was up more than 450 points, while the TSX added just 53, as energy shares weighed on the index.
However, any weekly gains in U.S. markets were erased Thursday, driven by a steep decline in U.S. tech shares, many of which have led the market higher in recent months. On the economic front, new U.S. jobs data released Thursday showed that 881,000 Americans applied for unemployment benefits last week. Unemployment claims have continued to drop but remain near historic highs. Also weighing on sentiment was news that U.S. lawmakers still remain at an impasse over a new coronavirus relief package, further hampering hopes for a timely recovery. By Thursday’s close, the Dow dropped more than 800 points, the S&P surrendered 126, while the Nasdaq lost 598, or nearly 5%. In Canada, the TSX lost 249.
source https://richarddri.ca/u-s-markets-start-week-strong-but-lose-ground-thursday-in-tech-sell-off/
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