It’s been a rough month so far for North American equities, as markets have struggled with an abundance of mixed economic data and ongoing challenges presented by the Delta variant.
As of Wednesday, the Dow was down more than 1.5% since the start of September.
However, it was a strong start to the trading week on Monday as the S&P 500 snapped a five-day losing streak, while the TSX also closed higher — its first positive trading session since before Labour Day, thanks in large part to a rising energy sector. U.S. and Canadian stocks fell once again on Tuesday, even after new data showed that U.S. inflation had cooled slightly in August.
According to the U.S. Labor Department, the consumer price index rose a seasonally adjusted 0.3% in August from July—down markedly from June’s 0.9% pace. By Tuesday’s close, the Dow was off 292 points, while the TSX dropped 113. It was a bounce-back day on Wednesday, as surging oil prices (along with Tuesday’s positive U.S. inflation data) helped fuel a broad rally. All three major U.S. indexes posted strong gains, with the Nasdaq adding 124 points. In Canada, the TSX added 140 points, despite some potentially worrying inflation numbers.
According to Statistics Canada, the consumer price index jumped 4.1% in August, year over year, up from 3.7% in July. Prices rose in nearly all categories, led by an 8.7%-jump in transportation costs, fueled largely by skyrocketing gas prices. U.S. data released Thursday was fairly mixed. Although initial jobless claims rose to 332,000 – an increase of 20,000 – U.S. retail sales surprised to upside, rising 0.7% in August. In Thursday trading, U.S. stocks opened lower but pared losses throughout the day to finish fairly flat. In Canada, the TSX was down 92 points on weak economic data, including wholesale trade figures and declining housing starts.
source https://richarddri.ca/markets-struggle-for-traction-after-last-weeks-losses/
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