The TSX added 30 points on Monday, as tech shares rose, and investors eagerly looked toward Tuesday’s latest Canadian inflation data. It was the TSX’s seventh straight day of gains –the longest winning streak since last May. In the U.S., markets were closed for the Martin Luther King Jr. holiday.
U.S. stock indexes were mixed Tuesday, following sharply lower earnings from Goldman Sachs and Morgan Stanley, along with Chinese data that revealed a drastic slowdown in economic growth. By Tuesday’s close, the Dow had fallen nearly 400 points, the S&P 500 drifted 8 points lower, and the Nasdaq rose 16 points, thanks largely to rising Tesla shares. The TSX rose for the eighth day in a row, as Canadian inflation fell to 6.3% in December, helped by falling gas prices. Given Tuesday’s data, many analysts are expecting a 25-basis-point hike when the Bank of Canada meets next week.
There were red numbers all around in Wednesday trading as weak U.S. economic data stoked fears of a recession. According to the U.S. Commerce Department, retail sales fell 1.1% in December, with higher interest rates and inflation hurting spending on cars, gas and big-ticket items, like furniture. The news sent investors flocking into U.S. Treasurys, as 10-year yields tumbled 16 basis points to 3.374%. Although losses for the TSX were relatively minor (0.4%), it was a different story for the Dow, which declined 614 points (1.8%). Meanwhile the Nasdaq fell 138 points, and the S&P 500 lost 62.
U.S. stocks registered modest losses Thursday as economic data and corporate-earnings reports failed to provide a clear picture of the U.S. economy. While jobless claims fell in the U.S., the latest earnings reports have been mixed. In Canada, the TSX dropped 35 points by Thursday’s close.
Finally, as the U.S. government is about to run up against the debt limit, the Treasury Department is expected to begin deploying “extraordinary measures” in order to keep paying obligations to bondholders, Social Security recipients and others. Lawmakers and the Biden administration have roughly five months to pass legislation to avoid defaulting on the debt.
source https://rosenbergdri.ca/markets-begin-to-wobble-over-fears-of-recession/
Dri Financial Group 