It’s been an up-and-down week for North American markets as investors worry that rising inflation will force the Fed to raise interest rates sooner than planned.
U.S. stocks slipped to start the trading week, with the Dow and Nasdaq registering slight losses, while the S&P 500 was flat. In Canada, the TSX dropped 85 points.
U.S. markets were back in the green on Tuesday after the U.S. Commerce Department reported that retail sales rose 1.7% in October, raising hopes for a strong holiday sales season. In Canada, the TSX hit an intraday high before closing the session with a modest 34-point gain.
In economic news, Canadian inflation rose in October to its quickest pace in nearly 19 years. According to Statistics Canada, the headline consumer price index rose 4.7% in October year-over-year — the seventh straight month that inflation has exceeded the Bank of Canada’s target of 1-3%. While prices rose in all eight major categories, consumers were hit especially hard at the gas pump. Meanwhile, the loonie on Wednesday sunk to its lowest level in nearly six weeks against the U.S. dollar as oil prices fell.
Despite strong earnings reports from key U.S. retailers, U.S. markets recorded moderate losses Wednesday as inflation concerns continue to weigh on sentiment. By the day’s close, the Dow dropped 211 points, while the S&P 500 and Nasdaq lost 12 and 52 points, respectively. In Canada, the TSX surrendered 64 points.
The U.S. Labor Department reported Thursday that initial jobless claims fell to a seasonally adjusted 268,000, the lowest level since the pandemic walloped the U.S. economy last spring.
It was a fairly quiet trading session on Thursday as North American markets finished somewhat mixed. The Dow and TSX recorded minor losses, while the S&P 500 and Nasdaq saw modest gains.
A Mixed Week for North American Markets
For the four trading days covered in this report, the Dow dropped 229 points to close at 35,871, the S&P 500 added 21 points to settle at 4,704, while the tech-heavy Nasdaq climbed 133 points to close at 15,994. In Canada, the TSX lost 131 points to end at 21,673.
source https://richarddri.ca/markets-struggle-for-traction-as-inflation-fears-impact-sentiment/
Dri Financial Group 