While stocks have steadily climbed in recent weeks, sentiment took a hit this week as investors digested a wide range of mixed economic data and a rapid rise in the spread of the Delta variant.
While the Dow and S&P kept climbing Monday, the TSX surrendered ground after Prime Minister Justin Trudeau called an early election, and oil prices fell in response to disappointing economic numbers from China.
All four major N.A. indexes were in the red Tuesday after the Commerce Department reported that U.S. retail sales fell sharply in July—more than 1% from June. The Dow and S&P both snapped a five-day winning streaks, losing 282 and 32 points, respectively. Small-caps also fell Tuesday, pulling the Russell 2000 down 1.2%. The TSX extended its losses for the fourth straight session, with broad-based declines in the health care, industrials, energy and materials sectors.
Market losses continued Wednesday after minutes from the Federal Reserve’s last meeting indicated the central bank could begin the tapering process sometime this year. The Dow plunged 382 points, while the Nasdaq dropped 130, and the S&P shed almost 50 points. The TSX dropped 61 points, as energy prices continued to slide over fears of weakening global demand. With commodity prices under pressure, it’s also shaping up to be a rough week for the loonie, which on Wednesday weakened to its lowest level in nearly four weeks against the U.S. dollar.
In economic news, Statistics Canada reported Wednesday that the annual inflation rate accelerated to a stronger-than-expected 3.7% in July; however, core inflation (a more reliable indicator) was 2.47%, slightly below analysts’ expectations.
In Thursday trading, the TSX continued its longest losing streak in 17 months, notching a sixth day of losses, while U.S. stocks ended the day flat after a choppy trading session.
source https://richarddri.ca/n-a-indexes-wobble-over-slowing-global-growth-fed-tapering/
Dri Financial Group 