Major U.S. indexes inched up Monday, and bond yields hit their highest level in over a decade as investors awaited the Fed’s latest interest-rate hike on Wednesday.
The Dow, S&P 500 and Nasdaq registered solid gains, while the TSX rose 176 points, buoyed by energy, financials and industrials. In U.S. bond markets, 10-year Treasury yields rose to 3.489%, the highest level since 2011, while the two-year note climbed to 3.946%, its highest level since 2007.
U.S. indexes opened Tuesday morning in the red and stayed there throughout the day as the Fed’s impending decision continued to weigh on markets. The Dow dropped 313 points, while the S&P 500 and Nasdaq surrendered 44 and 110, respectively. In Canada, the TSX fell 194 points in a broad-based selloff.
Also, on Tuesday, Statistics Canada reported that the country’s annual headline inflation rate slowed to 7% in August, down from 7.6% in July, thanks mainly to lower gasoline prices.
On Wednesday, U.S. stocks fell sharply after the Fed, as expected, announced another 75-basis-point hike. The Fed’s decision will bring its benchmark rate to a range of 3% to 3.25%, its highest level since 2008. U.S. stocks traded higher early in the morning, then dropped shortly after the Fed’s announcement. Although they rallied a bit later, indexes fell during the session’s final hour. By Wednesday’s close, the Dow had plummeted 522 points, the S&P 500 dropped 66, and the Nasdaq was off 205 points. In Canada, the TSX declined 184 points on energy sector weakness.
North American stock indexes struggled Thursday as worries over higher rates and a possible U.S. recession weighed on performance. By Thursday’s close, all four major North American indexes recorded modest losses, while 10-year U.S. Treasury yields settled at 3.705%, their biggest one-day gain since June.
N.A. Indexes Drift Lower
For the four trading days covered in this report, the Dow lost 745 points to close at 30,077; the S&P 500 dropped 115 points to settle at 3,758, while the tech-heavy Nasdaq sunk 381 points to close at 11,067. In Canada, the TSX lost 383 points to end at 19,003.
source https://rosenbergdri.ca/markets-wobble-as-fed-raises-rates-another-75-basis-points/
Dri Financial Group 