N.A. Stocks rallied to close sharply higher on Monday as investors went bargain shopping among sectors hardest-hit by the coronavirus recession, including financials and energy. By Monday’s close, the Dow was up more than 400 points, while the TSX added 177.
However, U.S. markets declined Tuesday after two sessions of solid gains as investors looked ahead to the first debate between President Trump and former VP Joe Biden. Fears of a second wave of coronavirus in the U.S. and slim prospects for a relief package also weighed on sentiment. In Canada, the TSX declined 31 points, dragged lower by losses in the energy sector, which saw a significant drop in crude prices. By Tuesday’s close, the TSX energy sector had fallen 4.26%. All three U.S. indexes climbed Wednesday to end the quarter on a strong note. Despite a stretch of volatility that stalled momentum in September, the S&P 500 and Dow gained 8.5% and 7.6%, respectively, over Q3. Both indexes are up more than 26% since the end of March, while the Nasdaq has risen 45% over the past six months, its biggest two-quarter gain since 2000. All three major U.S. indexes jumped after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin both expressed hope for a breakthrough in partisan stimulus negotiations, but gains were pared later in the day after key Republicans dismissed the likelihood of anything passing before the U.S. election. In Canada, the TSX lost 90 points on Wednesday, closing out Q3 with a 1.3% decline. Over the quarter, the health care sector was up more than 30%, while the materials, consumer discretionary and energy sectors were the weakest performers.
U.S. indexes edged slightly higher Thursday as investors continued assessing the prospects of Congress passing an additional stimulus package before next month’s election. In Canada, the TSX started off Q4 with a modest gain of 63 points.
Dri Financial Group 