The Dow declined Monday from last week’s record high as investors worried that surging coronavirus infections could stall economic growth through the winter months. Although the Dow and S&P were off, the Nasdaq closed at a record high, while the TSX was buoyed by the materials sector, which saw gold climb on renewed hopes for a fiscal stimulus package in the U.S.
All four major N.A. markets closed higher Tuesday, with the S&P and Nasdaq setting record highs, as the health care sector rose on positive vaccine news. The TSX also ended the day in positive territory, with energy stocks turning in a strong performance despite a minor pullback in crude prices.
It was a rough session for N.A. markets Wednesday, with the TSX off nearly 80 points as the materials and tech sector weighed on the index. In the U.S., markets retreated from record highs as negotiations stalled once again between lawmakers looking to pass another fiscal stimulus package.
U.S. markets retreated Thursday morning after fresh data showed new jobless claims jumped sharply last week to 853,000 — substantially more than economists had forecast. The latest jobs data underscores the desperate need for more stimulus, but Republicans seem unwilling to sign off on a substantial spending bill. Also weighing on sentiment was the latest coronavirus data from the U.S., with the death toll climbing to a new single-day record of 3,100. By Thursday’s close, the numbers were mixed: the Dow was down 75 points, the Nasdaq was up 67, and the TSX added 33.
Finally, negotiations on a post-Brexit trade deal between the U.K. and European Union are entering their final hours as both sides reportedly have until Sunday to reach a decision. The ongoing drama has once again dragged down the pound, which weakened nearly 1% against the greenback Thursday.
U.S. Markets Lose Ground; TSX Up Slightly
For the four trading days covered in this report, the Dow lost 219 points to close at 29,999, the S&P 500 dropped 31 points to settle at 3,668, while the tech-heavy Nasdaq declined 59 points to close at 12,405. In Canada, the TSX added 72 points to end at 17,593.
source https://richarddri.ca/sp-nasdaq-hit-tuesday-highs-but-u-s-economic-picture-remains-uncertain/
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