N.A. markets got off to a strong start Monday as a rebound in technology shares lifted U.S. and Canadian stocks, helping major indexes recover after last week’s pullback. By Monday’s close, the Dow was up nearly 330 points, while the TSX added 128.
Global equities turned in another fairly strong performance on Tuesday, on upbeat Chinese data and positive numbers on U.S. factory output, although there are signs that the U.S. manufacturing sector is slowing. The TSX also gained on Tuesday as domestic factory sales rose 7% in July from June, signs that Canada’s economic recovery was on track.
Although N.A. markets started strong, stock gains slipped away late Wednesday–despite the Fed’s assurance it was ready to keep interest rates near zero for three more years. Fed Chair Jerome Powell went on to add that the U.S. economic outlook was “highly uncertain,” while stressing the need for additional fiscal support from Congress. While the Dow held on to a small gain, all three other major N.A. indexes finished in the red. The TSX closed 136 points lower, even though oil prices jumped more than 4%, following a reduction in U.S. crude inventories.
In economic data released Wednesday, U.S. retail sales climbed just 0.6% in August, prompting further concerns of a stalled recovery. Conversely, data released this week showed Chinese industrial output jumped the most in eight months in August, up 5.6%, while retail sales in China also grew for the first time this year, beating forecasts.
Lingering concerns over the Fed’s statement Wednesday weighed on markets again Thursday. Investor optimism also waned on news that U.S. jobless claims held nearly steady at 860,000 last week, dashing hopes for a speedy labour- market recovery. By Thursday’s close all four N.A. markets were in the red, with the Nasdaq losing 140 points.
source https://richarddri.ca/mixed-week-for-stocks-as-fed-underscores-uncertainty-in-u-s-economy/
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