U.S. stocks surged Monday, buoyed in large part by strong earnings from some of the biggest U.S. banks.
The Dow jumped 551 points, the S&P 500 added 95, and the Nasdaq shot up more than 350 points. It was also a strong day for the TSX, which climbed nearly 300 points, on strength in tech and financials. In the U.K., government bonds rallied after the government said it was reversing nearly all its proposed tax cuts, which had sent U.K. markets into turmoil over the past few weeks.
U.S. and Canadian stocks closed higher for a second straight day on Tuesday as solid quarterly earnings from key financial and industrial names fueled positive momentum. In Canada, the TSX closed 177 points higher in a broad rally, led by the industrials sector.
North American stock indexes ran out of steam Wednesday as recession fears continue to mount. The S&P 500 declined nearly 1%, the Nasdaq fell 1.2%, and the Dow dropped 0.5%. In bond markets, 10-year U.S. Treasury yields hit their highest level in more than 14 years, while 5- and 10-year Canadian Treasury yields were also rising at a brisk pace.
Statistics Canada reported Thursday that the Consumer Price Index (CPI) for September came in at 6.9% (year over year), slightly higher than economists’ forecasts. Core CPI, which excludes food and energy prices, rose 5.4%. Given the latest numbers, expectations are rising for a 75-basis-point hike at the Bank of Canada’s next policy meeting.
U.S. and Canadian stocks registered moderate losses Thursday as investors continue to assess corporate earnings and the likelihood of recession in 2023. By Thursday’s close, the Dow lost 90 points, while the S&P 500 and Nasdaq dropped 29 and 66 points, respectively. The TSX also drifted lower Thursday, losing 95 points.
Finally, U.K. Prime Minister Liz Truss said Thursday that she would resign, making her the shortest-serving prime minister in British history, after a chaotic six weeks filled with economic and political turmoil caused largely by proposed tax cuts.
Markets Gain Ground as Earnings Season Begins
For the four trading days covered in this report, the Dow gained 698 points to close at 30,333, the S&P 500 rose 82 points to settle at 3,665, while the tech-heavy Nasdaq added 294 points to close at 10,615. In Canada, the TSX climbed 253 points to end at 21,058.
source https://rosenbergdri.ca/strong-earnings-give-markets-a-boost-but-recession-fears-continue-to-weigh/
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