It was a rough start to the trading week as the Dow dropped more than 500 points on Monday, sparking fears over increased volatility in the months ahead. Meanwhile, U.S. oil prices tumbled 5%, and gold, traditionally a safe haven, fell 2.6%. The simultaneous declines across a range of assets spurred anxiety for some investors who fear a repeat of March’s market turmoil. Sentiment has certainly soured in September, with many investors growing uneasy as the prospect of a second fiscal-stimulus package looks especially bleak in the midst of a bitter U.S. election campaign. Meanwhile, the TSX fell over 200 points, hitting its lowest level in over two months.
N.A. markets bounced back on Tuesday with the tech-heavy Nasdaq leading the way with a 1.7% gain, while the TSX added 161. Although markets stabilized somewhat Tuesday, the mood this week remains precarious as new coronavirus cases have begun spiking across the globe.
It was another brutal session on Wednesday. Wall Street’s main indexes dropped sharply as the tech selloff continued and data revealed that U.S. business activity remains flat. The TSX was also hit hard, tumbling 2% in a broad selloff that gained momentum in late trading. The materials sector had a particularly rough session, as gold prices fell more than 2% to two- month lows, leaving many investors questioning gold’s safe-haven status. By Wednesday’s close, the Dow and Nasdaq had lost 525 and 299 points, respectively, while the TSX shed 326.
Before trading on Thursday, the U.S. Labor Department reported that new weekly jobless claims totalled 870,000–up from 866,000 last week and well above the 840,000 analysts had been forecasting. Further weighing on sentiment was President Trump’s refusal Wednesday evening to commit to a peaceful transition of power if he loses the November election. The major U.S. indexes were especially volatile Thursday, with the S&P 500 briefly entering correction territory. However, by Thursday’s close, all four major N.A. indexes registered slight gains for the day.
source https://richarddri.ca/markets-turn-volatile-as-fears-over-u-s-recovery-mount/
Dri Financial Group 