U.S. stocks registered minimal losses on Monday, while 10-year U.S. Treasurys continued their climb after the long holiday weekend, hitting 2.861%.
In Canada, the TSX ended with a slight 23-point gain, buoyed by rallying energy stocks, as natural gas prices in the U.S. hit a 13-year high.
Major U.S. stock indexes had their best day in a month on Tuesday as investors parsed the latest round of earnings reports and how inflation is impacting corporate profits. The Dow was up 500 points, the S&P 500 climbed 70 points, while the tech-heavy Nasdaq jumped 287 points. In bond markets, 10-year U.S. Treasury yields rose yet again to 2.911%. The TSX also ended in positive territory, adding 140 points, although declining energy shares weighed on the index.
Statistics Canada reported Wednesday that the country’s inflation rate climbed to 6.7% in March, a full percentage point higher than February’s previous 30-year high. The loonie surged above the US80-cent mark after the inflation report, up about three-quarters of a cent on the day. Meanwhile, in the U.S., data last week indicated that the CPI rose to 8.5% in March year-over-year, the fastest annual pace since December 1981. It was a mixed day for U.S. markets on Wednesday. The Dow climbed 249 points, the S&P 500 was essentially flat, while the Nasdaq dropped 166 points, weighed down by tumbling Netflix shares, which plunged 35% after the streaming giant reported a drop in subscribers. In Canada, the TSX shed 20 points.
After being up for much of the day, U.S. stocks fell late Thursday, as a selloff in government bonds accelerated, with 10-year U.S. Treasurys reaching 2.939% Thursday, up nearly 100 basis points from Wednesday. Much of the selling pressure came in response to Fed Chair Jerome Powell’s remarks that a 50-basis-point hike will be “on the table” when the Fed meets in early May. Powell’s comments were made Thursday afternoon, speaking during a meeting of the International Monetary Fund. By Thursday’s close, the Nasdaq had dropped 278 points, while the Dow and S&P 500 lost 368 and 66, respectively. In Canada, the TSX tumbled 347 points, thanks to declining shares in the energy and materials sectors.
Dow Gains Ground; Nasdaq, TSX Decline
For the four trading days covered in this report, the Dow gained 342 points to close at 34,793, the S&P 500 added 2 points to settle at 4,394, while the tech-heavy Nasdaq sunk 176 points to close at 13,175. In Canada, the TSX lost 205 points to end at 21,650.
source https://richarddri.ca/u-s-treasury-yields-keep-climbing-as-fed-contemplates-aggressive-hikes/
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