Canada’s main stock index posts small loss Monday, U.S. stocks mixed amid tech gains
TORONTO –
Canada’s foremost inventory index posted a small loss Monday amid broad-based weak spot, whereas U.S. markets have been blended because the tech-focused Nasdaq gained virtually 1.6 per cent.
The S&P/TSX composite index closed down 33.52 factors at 19,784.87.
In New York, the Dow Jones industrial common was down 36.97 factors at 34,463.69. The S&P 500 index was up 30.06 factors at 4,399.77, whereas the Nasdaq composite was up 206.81 factors at 13,497.59.
Monday’s features have been all about tech, mentioned Allan Small, senior funding adviser at iA Private Wealth.
Nvidia, the chip-making firm that helped drive the tech rally earlier this yr, noticed a number of analyst upgrades that boosted its inventory, mentioned Small. Nvidia’s inventory rose virtually 8.5 per cent Monday.
The firm is about to report outcomes for the newest quarter on Wednesday after the bell.
Nvidia’s final report was “one of the best quarterly earnings reports I’ve ever seen from any company in any sector,” mentioned Small.
“They just blew it out of the water.”
The bar is excessive for Nvidia forward of Wednesday’s report, he mentioned, and if it misses, that might reverberate throughout your complete tech sector.
“If that were to show signs of cracking, that could be a pretty big negative, in my opinion, for not only semiconductors but the tech sector as a whole. And we know how much the tech sector means to the overall market,” he mentioned.
Bond yields continued to rise, with the 10-year Treasury yield touching its highest stage since 2007, placing strain on the inventory market. Yields are rising on a rising sense that rates of interest might stay increased for longer, mentioned Small.
“I think a lot of this is on the back of what the Fed is doing,” he mentioned, in addition to on latest financial information coming in just a little bit hotter than anticipated.
While a pause is probably going on the U.S. Federal Reserve’s September assembly, the query is whether or not extra hikes are nonetheless within the playing cards, he mentioned.
“It’s all about inflation and the latest data.”
On Friday, Fed chairman Jerome Powell will converse on the central financial institution’s annual financial symposium in Jackson Hole. Though his feedback are extremely anticipated, Small would not anticipate any surprises as Powell has to proceed balancing maintaining a hawkish tone with out sending markets right into a free-fall.
The Canadian greenback traded for 73.84 cents UScompared with 73.79 cents US on Friday.
The October crude contract was down 54 cents at US$80.12 per barrel and the September pure fuel contract was up eight cents at US$2.63 per mmBTU.
The December gold contract was up US$6.50 at US$1,923 an ounceand the September copper contract was up a penny at US$3.72 a pound.
With recordsdata from The Associated Press
