Weekly Market Snapshot
Week of April 22, 2024
- Equity markets continued their correction this week, with some firm economic data unable to counter the reality that rate cuts are not coming as soon or aggressively as previously thought.
- The S&P 500 fell 3.2% by late Friday, with Technology, Consumer Discretionary and Communication Services posting the deepest declines alongside some steep selloffs from the likes of Netflix.
- Meantime, the TSX gave back a more modest 0.7% as the sector mix was relatively favourable.
Week of April 15, 2024
- Equity markets struggled this week as a tough U.S. inflation print further dialed back rate-cut expectations.
- The S&P 500 fell 1.6%, with financials, health care and materials posting the deepest declines. A mixed bag of early bank earnings also weighed late in the week.
- Meantime, the TSX gave back 1.6%, as health care was trounced more than 12%, while higher-yielding names struggled.
Week of April 8, 2024
- Equity markets were mixed this week alongside a heavy dose of economic data and Federal Reserve commentary. The S&P 500 dipped 1.0%, with health care, consumer staples and banks posting the deepest declines, while energy and telecom outperformed.
- Indeed, it was a strong week for resource stocks with oil and gold prices now making big runs. WTI oil prices pushed above $86, now up more than 20% since the start of the year, while gold has rallied 13%.
- This is, of course, music to the ears of the TSX which outperformed this week, up 0.4%. Materials and energy posted strong gains of 5.4% and 3.3%, respectively.
Week of April 1, 2024
- Equity markets rose further this week, with solid growth data setting the backdrop.
- The S&P 500 gained 0.4% on a broad mix of strength across utilities, banks and health care, while the high-fliers—technology and telecom services—lagged.
- The TSX added 0.8% with strength in health care, materials and energy, and the latest rally has lifted the index a solid 5.8% year-to-date.
- Notably, each of the TSX, S&P 500 and Nasdaq were pushing record highs this week.
Week of March 25, 2024
- Equity market rose this week with a combination of sturdy economic data and no major hawkish surprises by the Federal Reserve.
- The S&P 500 rose 2.3%, led by banks and telecom services, while another hot IPO (Reddit) shot out of the gates.
- The TSX added 0.6%, touching a new record high at one point, led by Healthcare but held back by weakness in Consumer Staples and telecom.
Week of March 18, 2024
- Equity markets struggled this week, with firm U.S. inflation data further pushing out Fed easing expectations, and even the Bank of Japan is set to end an era of negative interest rate policy.
- The S&P 500 dipped 0.1%, with Consumer Discretionary and Health Care lagging.
- The TSX added 0.5%, as Energy and Materials posted solid gains.
Week of March 11, 2024
- Equity markets finished mixed this week as the economic data and central bank chatter continued to suggest that rate cuts are coming. Soon. Promise.
- The S&P 500 dipped 0.3%, with gains in banks and utilities offset by weakness in technology and consumer discretionary. The TSX outperformed, gaining 0.9% on the back of materials (i.e., gold) and strength in utilities and banks.
- Both the S&P 500 and TSX pushed new 52-week highs this week before dipping on Friday, and both are still running along above their 50- and 200-day moving averages.
Week of March 4, 2024
- Equity markets notched further gains this week amid a mixed run of growth and inflation data.
- The S&P 500 rose 0.9%, led by technology and consumer discretionary.
- The TSX added 0.7%, with energy getting a boost from a return to $80 oil. Bank earnings results were mixed, and the sector finished the week little changed when all was said and done.
Week of February 26, 2024
- Equities hit fresh record highs this week in a number of markets from Europe to Japan.
- In North America, the rally was fuelled by a stellar earnings report by Nvidia on Wednesday, which sparked broader exuberance on the benefits of AI. Consumer staples and technology led the way, though gains in the S&P 500 were broad-based among sectors.
- The feeling was a bit more muted on the TSX (despite better economic data; see below), which eked out only a 0.7% advance on the week. Note that tech companies fell, perhaps as investors were lured by flashier names south of the border; that said, the sector remains well above its 200-day moving average.
Week of February 19, 2024
- Equity markets were little changed this week, with tough inflation news keeping the market in check.
- The S&P 500 dipped 0.4% as gains in banks and energy were offset by weakness in technology and communication services. The index continues to hold above that closely-watched 5,000 level.
- Meantime, the TSX rose 1.2% on the back of broad strength in energy, financials, consumer staples and industrials—some solid earnings hits helped. While not pushing record highs like its U.S. counterpart, the Canadian index has moved to the highest level since early 2022, and is climbing the ascending 50- and 200-day moving averages again.
Week of February 12, 2024
- Equity markets were mixed this week with little in the way of major market-moving data.
- The S&P 500 rose 1.4% to a record high, topping the 5000 level for the first time on record. Solid economic data in recent weeks, ongoing expectations that we’re on the verge of an easing cycle, and rock-solid earnings results are all supporting the market.
- The TSX, however, was down 0.4% on the week and continues to lag its U.S. counterpart, now barely positive year-to-date (versus 5.4% for the S&P 500); and up just 2% over the past year (23% for the S&P 500).
Week of February 5, 2024
- Equity markets held firm this week amid a wide range of market-moving events.
- The Fed Open Market Committee (FOMC) left rates unchanged, as expected, but quashed some expectations of very near-term rate cuts; another flare-up of regional bank concerns reverberated through some pockets of the market; U.S. economic data were rock solid; and, for good measure, some large tech names like Meta posted strong earnings and announced some cash will be returned to shareholders—even tech investors love themselves some dividends.
- All in, the S&P 500 rose 1.4%, with consumer stocks leading the way, while the TSX dipped 0.2% on weakness in telecom and energy.
Week of January 29, 2024
- Markets continued their strong start to the year with inflation and growth both cooperating.
- The S&P 500 rose 1.1% as energy and telecom services rallied more than 4%, while consumer discretionary lagged. The index pushed further into record territory at one point, leaving it up more than 30% from the October 2022 low, a level that was set amid widespread expectation for a U.S. recession. The TSX added 1% on the week.
- With the advance Q4 growth numbers now in hand, the U.S. economy finished 2023 by reeling off a sixth consecutive quarter of growth at 2% or better, almost laughing off recession calls and over 500 bps of Fed tightening. While Q4’s upside surprise of 3.3% annualized rate was largely because of trade and inventories, final domestic demand continued to run at a solid 2.7% clip and is now up 3% in the past year.
Week of January 22, 2024
- Equity markets were mixed this week, but U.S. stocks powered higher with the S&P 500 closing at a record high. The index rose 1.2% on the week, led by a strong 4.3% rally in technology, while energy, materials and utilities lagged. The Nasdaq added 2.3% on the week and now almost 20% in the last three months alone.
- Meantime, the TSX dipped 0.4% and continues to lag over the past three months.
- As usual, it's a story of little exposure to what's working (tech), and a lot of exposure to what's not (energy and materials).
Week of January 15, 2024
- Equity markets pushed higher this week as investors continue to zero in on 2024 rates hikes, and despite sticky U.S. inflation results.
- The S&P 500 gained 1.8%, and is within close striking distance of an all-time high. The Dow continues to bounce around near record levels, while the Nasdaq still has about 7% to climb. The TSX also has some more work to get there, and underperformed with a 0.3% advance this week.
- Technology, communication services and consumer discretionary led North American markets on the week, which naturally leads to the Canadian market lagging.
Week of January 8, 2024
- Equity markets struggled this week after expectations of early-2024 rate cuts met the reality that those cuts are likely still some time off.
- The S&P 500 fell 1.5% on the week, with weakness in technology and consumer discretionary offsetting gains in health care and utilities.
- Meantime, the TSX gave back just 0.1%, with solid gains in telecom and energy lending support, while technology and consumer stocks fell.
Week of December 18, 2023
- Equity markets rallied this week as markets priced in early-and-often rate cuts for 2024.
- The S&P 500 rose 2.5%, led by banks and cyclicals (materials, industrials and consumer discretionary), while the Dow pushed to a record high.
- The TSX gained 1.0% with banks jumping almost 4% on the week.
Week of December 11, 2023
- Equity markets were mixed this week alongside sturdy U.S. labour market data, and a bond market that continues to price in rate cuts next year.
- The S&P 500 inched up 0.2%, with banks and telecom services leading the pack.
- The TSX dipped 0.6% as weakness in energy and materials weighed on the index.
Week of December 4, 2023
- Equity markets posted modest gains this week, alongside more encouraging U.S. inflation data and amid a wave of Canadian bank earnings.
- The S&P 500 gained 0.8%, with banks jumping more than 4%. The TSX rose 1.7%, led by materials and health care.
- The banks had a fine week overall, up 1.9%, as the sector rolled out a wide range of Q4 earnings hits and missed, which included a handful of dividend increases.
Week of November 27, 2023
- While not all global equity markets ended the week on a positive note, most of the majors posted relatively solid gains as some softer economic data bolstered hopes that rate relief could be just around the corner.
- While U.S. Thanksgiving likely kept trading a little thinner than usual, the moderate helping of weaker U.S. data offered an early read on the start of Q4. Notably, existing home sales slipped to the lowest level since 2010 in October, while durable goods orders fell to a four-month low.
- For its part, the Fed has acknowledged the economy’s headwinds, noting that it is “proceeding carefully” and that its members would continue to closely monitor all incoming data in the coming months.
Week of November 20, 2023
- Equity markets rallied this week alongside another move down in bond yields.
- The S&P 500 rose 2.2%, led by banks, materials and consumer discretionary, but all sectors posted gains.
- Meantime, the TSX gained 2.7% as rate sensitives sprung back to life, and technology jumped almost 7%.
Week of November 13, 2023
- Equity markets were mixed this week amid a thin run of economic data, while comments from both the Fed and Bank of Canada signalled we have a long way to go still before we get any rate relief.
- The S&P 500 added 1.1%, with technology and telecom services leading the pack.
- Meanwhile, the TSX slipped 1.0% as health care, materials and energy fell.
Week of November 6, 2023
- Equity markets rallied this week alongside a sharp retreat in bond yields. The S&P 500 rose 5.9%, led by banks and consumer discretionary.
- The Federal Reserve left interest rates unchanged, as widely expected, and market expectations that they are done tightening continued to firm.
- Meantime, the October payrolls report landed just right, with a 150k increase in jobs, a one-tick move up in the jobless rate (a little more slack helps at this stage), and cooler wage growth. In an instant, the punishing selloff in the Treasury market has turned, at least for now, with 10-year yields down almost 50 bps from when they touched 5% in mid-October.
Week of October 30, 2023
- Equity markets were down again this week amid steady Treasury yields, some mixed earnings reports and resilient economic data.
- The S&P 500 fell 2.5%, with telecom services lagging down more than 6%, while energy, banks and health care also fell sharply. Utilities were the lone sector to scratch out a positive performance on the week, but they are the worst performer this year. Meantime, the TSX was down 2.0% on the week, with technology and health care lagging, while utilities and telecom held firm.
- Both the S&P 500 and TSX have now slumped below their 200-day moving averages.
Week of October 23, 2023
- Equity markets struggled this week alongside the relentless selloff in Treasuries. The S&P 500 fell 2.4%, with weakness in consumer discretionary, banks and technology weighing heaviest.
- The index is again flirting with the 200-day moving average as it drifts down from above.
- Meantime, the TSX was down 1.8% on the week, with gains in materials and energy lending some support as WTI pushed back above $90 at one point.
Week of October 16, 2023
- Equity markets were mixed this week as Treasury yields took a break from their relentless push higher.
- The S&P 500 gained 0.4% on the back of utilities and energy, while consumer discretionary lagged.
- The TSX added 1.1%, with a 5% jump in energy leading the advance.
Week of October 9, 2023
- Equity markets were mixed this week alongside still-rising yields and a rock-solid U.S. payrolls report.
- The S&P 500 added 0.5% with gains in communication services and technology offset by deeper declines in energy, utilities and consumer staples. Ten-year Treasury yields pushed to 4.8% to end the week, the highest since 2007, with the weekly selloff capped by a juicy 336k increase in U.S. payrolls in September.
- The TSX was down 1.5% on the week, and continues to struggle more under the weight of higher yields.
Week of October 2, 2023
- Equity markets struggled this week as bond yields continued to push higher and test valuations.
- The S&P 500 fell 0.7%, with utilities down sharply, while consumer stocks and financials also struggled. Ten-year Treasury yields continued to rise on the week, as did most of the yield curve, before backing off somewhat on Friday. That despite some sluggish data and a well-behaved 'supercore' inflation print, which rose just 1.7% annualized in August, or 3.4% over the latest three months.
- Meantime, the TSX fell 1.2% as rate-sensitives and higher-yielding sectors struggled alongside new highs for GoC yields—as one example, the closely-watched 5-year yield pushed to 16-year highs.
Week of September 25, 2023
- Equity markets slumped this week as the ongoing reality of higher-for-longer interest rates set in deeper.
- The S&P 500 fell 2.9%, with all sectors in the red. Consumer discretionary posted the deepest decline, down more than 6%, while banks and technology were also weak.
- Meantime, the TSX slid 4.1% as higher-beta sectors (see technology and health care) were down sharply, while rate-sensitives also struggled.
Week of September 18, 2023
- Equity markets gave up solid gains late this week alongside a decent run of economic data, but another move higher in oil prices.
- The S&P 500 dipped 0.2%, led by banks and utilities, while industrials and technology lagged.
- The TSX, however, churned out a solid 2.7% gain as materials, banks, industrials and utilities all posted gains above 3%.
Week of September 11, 2023
- It was a challenging week for global stocks, though the major indices in North America and Europe appeared to get some footing on Friday. Continued strength in oil prices has been one driver of the recent weakness, as it has fanned inflation concerns at a time when many major central banks hoped to be at or near the end of their rate-hiking campaigns. Notably, oil prices vaulted to their highest levels of the year, rising above the $87 mark following coordinated moves, announced on Tuesday, that will see Saudi Arabia and Russia extend current voluntary production cuts (1mb/d and 300kb/d, respectively) through year-end.
- The S&P/TSX ended the week 2.3% below last Friday’s close, marking its fifth down week of the last six. On a sectoral basis, materials, telecom and technology led to the downside, while health care, energy and consumer stables saw more moderate losses.
- The S&P 500 was a little higher up the equity market leaderboard, falling 1.3% this week. While the losses were fairly broad-based (outside of energy and utilities), technology was a notable underperformer, weighed by the Chinese government’s new restrictions on foreign-branded electronic devices (i.e., iPhones).
Week of September 4, 2023
- Equity markets enjoyed a winning week to turn the page to a new month. Supporting the broad-based gains were data pointing to a softer labour force and therefore, more reason for the Fed to stand pat.
- The S&P/TSX led the weekly gains, supported by an 11% pop in tech stocks, bringing that sector’s year-to-date bounce up over 50%.
- A more modest 4% rise in tech and energy also powered the S&P 500 to a 2.5% rise on the week, while consumer staples and utilities lost some ground in that index.
Week of August 28, 2023
- In this last full week of August, stocks struggled to find direction, posting solid gains one day only to be wiped out the next day. By the time all was said and done, the S&P 500 eked out a 0.8% gain, marking the first increase in the past four weeks, while the Dow slipped 0.4%.
- The Nasdaq jumped 2.3%. Despite the solid gains, the tech-heavy gauge failed to gain traction following more blow-out results from Nvidia.
- Meantime, the TSX added 0.1% on the week.
Week of August 21, 2023
- Equity markets slumped this week amid concern about China's economy and another move higher in bond yields. The S&P 500 fell 2.1%, with all sectors in the red. Banks lagged, down 5%, while consumer stocks were only slightly better.
- Earnings results on the latter were mixed, with Walmart raising its outlook, although hinting at some pressure on discretionary spending, while Target chopped its guidance.
- Meantime, the TSX was down 2.9% on the week, with materials, banks and telecom all struggling.
Week of August 14, 2023
- Equity markets were mixed this week alongside more evidence that inflation is coming further down the mountain. The S&P 500 slipped 0.3%, with technology and banks trailing as energy and health care led the pack. The index has faded in recent weeks, but is just running into the 50-day moving average and remains well above the 200-day mark.
- While the year-to-date 16% gain is still very top heavy—technology and communication services are each up more than 35%—the gains have broadened out recently.
- Over the latest three months, five of the ten major sectors have posted gains of 10% or more, and just two (consumer staples and utilities) are stuck modestly in the red. In market speak, this looks action that has moved toward pricing in a soft landing.
Week of August 7, 2023
- Equity markets slumped this week alongside a sharp selloff in the bond market through Thursday, and some mixed economic data.
- The S&P 500 was down 2.3%, with weakness in rate-sensitives and technology, while all other sectors but energy were in the red.
- Meantime, the TSX was down 1.4%, with all but energy also posting declines
Week of July 31, 2023
- Equity markets rallied this week on signs that the economy is holding firm despite ongoing rate hikes, while inflation continues to ebb. The S&P 500 gained 1.0%, with telecom services charging ahead almost 7%. Defensives and rate-sensitives lagged the pack.
- While the Fed raised rates as expected, the Bank of Japan's tweak to yield curve control lifted bond yields, while the European Central Bank also raised rates.
- The Nikkei and major European/U.K. indices were all higher on the week. The TSX, however, lagged with a 0.1% decline, as telecom, consumer staples and utilities were all lower.
Week of July 24, 2023
- Equity markets were mixed this week, patiently waiting for the results of next week's FOMC meeting.
- The S&P 500 rose 0.7%, while the TSX added 1.4%. The Q2 earnings season is underway, and it comes amid a still-tricky environment for profit growth and market expectations.
- This week highlighted as much, with a number of banks topping estimates and suggesting higher rates are helping net interest margins; some big names like Tesla and Netflix reported good results but were sold by investors; some disappointing numbers in the chip sector weighed on tech; and for every consumer business touting sturdy demand, there was seemingly one (e.g., Best Buy) eying ‘recessionary behaviours.’
Week of July 17, 2023
- Equities rallied this week amid generally strong earnings reports and a softer-than-expected U.S. inflation print that suggested we might be nearing the end of the road for Fed tightening.
- The gains extended beyond Wall Street, though—the TSX closed the week 2.2% higher, and even the CSI 300 was up almost 2% on the week.
- Annual growth in U.S. CPI slowed to 3.0% in June, a full percentage point below the previous month’s pace.
Week of July 10, 2023
- Equity markets struggled this week as a solid run of economic data stoked the higher-for-longer interest rate narrative. After going back and forth, and back again, pricing in rate cuts later this year, markets now seem to be finally throwing in the towel that this cycle is going to take longer to play out.
- The S&P 500 slipped 1.2%, with materials and health care lagging, while banks held firm. The index has still broken strongly out of the trading range that was in place for most of the past year, and is eying the all-time high set in January 2022 (less than 10% to go).
- Meantime, the TSX fell 1.6%, with widespread declines across technology, materials, energy and banks. Canadian stocks are now falling well behind their U.S. counterparts on the year, up just 2.3% versus 14.6% south of the border.
Week of July 3, 2023
- Half of 2023 is now in the bag and financial markets have had plenty to chew on.
- The broad macroeconomic backdrop shows an economy holding on relatively well despite widespread concern about recession—many buffers in place for the economy are proving their worth.
- The flip side is that inflation remains stubborn, leaving both the Bank of Canada and Federal Reserve to grapple with short-term core metrics that are still well above their comfort range.
Week of June 26, 2023
- Equity markets pulled back this week amid a quiet run of economic data.
- The S&P 500 slipped 1.4%, with banks (-4.1%) and energy (-3.4%) posting the deepest declines, while defensive sectors held at the top of the leaderboard.
- While the data flow was light, Fed Chair Powell testified to Congress, reiterating that the rate hold at the last meeting wasn’t necessarily a pause (more like a skip that reduces the tightening size); and reinforcing that they could be leaning against inflation with these elevated interest rate levels for a while still.
Week of June 19, 2023
- Equity markets rallied this week, with the AI-powered tech and communication services names still driving the gains. The S&P 500 rose 2.6%, with technology leading the pack up 4.4%. Not to name names, but the blowup in valuations for a select group of companies has now powered technology 41% higher this year, while communication services are not far behind, up 36%.
- Meantime, the TSX continues to lag, up 0.4% on the week as gains in consumer discretionary and technology were partly offset by declines in utilities and energy.
- It’s no secret that the Canadian index has been stuck in a range all year (+3% so far in 2023) even as the S&P 500 has broken out above last summer’s high (+14.8% in 2023). From a simple valuation perspective, at around 13x forward earnings versus 19x-plus in the U.S., Canada has rarely looked this cheap on a relative basis.
Week of June 12, 2023
- Equity markets held firm this week, with little in the way of major market-moving data.
- The S&P 500 gained 0.4%, led by consumer discretionary stocks, while technology dipped.
- Meantime, the TSX slipped 0.7% as health care, consumer staples and industrials lagged.
Week of June 5, 2023
- Equity markets rose this week, alongside a debt ceiling deal and mixed run of economic data. The S&P 500 added 1.8%, with all sectors posting gains. Congress passed the Fiscal Responsibility Act, which will suspend the U.S. debt ceiling until January 2025 along with some discretionary spending cuts.
- While the acute near-term risk of a bad credit outcome relating to the debt ceiling is now dealt with, the much more chronic problem of the United States' fiscal situation is going to persist.
- Meantime, U.S. payrolls surged by a stronger-than-expected 339k in May, but the details were weaker than the big headline. The jobless rate rose three ticks to 3.7%; hours worked dipped; and wage growth cooled to 4.3% y/y, although the 3-month annualized trend is still firm at 4.0%. Elsewhere, jobs openings rebounded to 10.1 million in April, but consumer confidence fell (May) and manufacturing remains in contraction, as measured by 46.9 on the ISM.
Week of May 29, 2023
- Equity markets were mixed this week, with some big moves in the tech sector helping the broad U.S. indices, but an unresolved debt limit standoff still weighing on sentiment.
- The S&P 500 added 0.3%, powered by a 5% surge in tech, while the TSX gave back 2.1% as banks lagged.
- Nvidia’s AI-fueled surge caught attention this week, but a handful of big tech and communication services names have been doing almost all the work in propping up equities this year.
Week of May 22, 2023
- Equity markets rose this week alongside a bounce in U.S. regional banks, and an early-week vote of confidence from President Biden that a deal will get done on the debt ceiling.
- On the latter, we’ll breathe easier when we actually see it, and negotiations were reportedly struggling as of Friday.
- The S&P 500 rose 1.6%, led by banks and technology. The TSX, however, dipped 0.3% as materials weighed.
Week of May 15, 2023
- The S&P 500 is up a solid 7% this year, despite concerns about the economy, debt ceiling, and ongoing stress in the bank sector.
- That is impressive resilience given all of the challenges thrown at the market.
- There are a number of reasons why stocks and risk assets more broadly have held in from a macro perspective.
Week of May 8, 2023
- Equity markets endured the FOMC announcement, some key economic data, debt ceiling concerns and ongoing trouble in the U.S. regional bank sector—just another week in the office. The S&P 500 ultimately finished down a modest 0.8%, but not without some meaningful swings. Banks were hit hard, down 4.6% on the week, with some regional names under intense pressure. Defensive sectors—see health care and utilities—held at the top of the pack along with technology.
- It’s also noteworthy that the rangebound S&P 500 has mainly been propped up by the large heavyweights, many of which are in tech or communications services, and have seen valuations benefit from the prospect of a Fed pause.
- In fact, the S&P 100 large cap sector is up 2.6% over the past three months, masking an 11% slide in the smaller and broader Russell 2000. Meantime, the TSX gave back 0.5% on the week, with weakness in energy and health care weighing.
Week of May 1, 2023
- U.S. equities ended April with nice gains as a number of big-tech names reported better-than-expected earnings.
- That lifted sentiment despite slowing economic growth and high inflation.
- The Dow and the S&P 500 gained 0.9% this week, while the Nasdaq was the big winner, jumping 1.3%. Meantime, the TSX finished 0.3% lower.
Week of April 24, 2023
- Equity markets were mixed this week, and all eyes are on the Q1 earnings season with notable hits (big banks) and misses (Tesla) already on the books.
- Based on the latest tally from Refinitiv, S&P 500 earnings are expected to fall 5% y/y in the quarter, marking a second consecutive quarter below year-ago levels. Results so far have been decent, with just under 70% of companies topping analyst expectations—the bar has been lowered since the start of the year.
- At the sector level, solid gains in consumer discretionary, energy and industrials compared to a year ago can’t quite offset declines in technology, communication services and health care.
Week of April 17, 2023
- Equity markets rose this week, helped by softer headline inflation and solid bank earnings.
- The S&P 500 rose 0.8%, with banks jumping almost 6% as some bigger-cap names in the sector topped earnings expectations. Industrials and energy were also strong, while utilities and tech lagged.
- The TSX added 1.9%, with higher oil prices driving a 2.8% advance in energy.
Week of April 10, 2023
- The S&P/TSX Index added 0.6%. Resource sectors lifted the broad index, with Energy and Materials among the largest gainers. The marijuana-centric Health Care sector was the worst performer as appetite for risky, non-profitable stocks cooled.
- The S&P 500 Index was down 0.1%. A sharp decline in job openings renewed fears of a recession. Weakness from semiconductor stocks weighed on the Technology sector’s returns, while the defensive Utilities and Health Care sectors were among the top performers.
- Europe’s STOXX 600 Index gained 0.9%, Japan’s Nikkei 225 Index lost 1.9% while China’s CSI 300 Index was up 1.1%.
Week of April 3, 2023
- Equity markets pushed higher again this week, finishing Q1 on a strong note.
- The S&P 500 rose a snappy 3.5% on the week and, despite plenty of drama, closed the first quarter with a strong 7% advance. Meantime, the TSX added 3.1% on the week, which has allowed it to churn out a 3.7% gain in the quarter.
- Oh, and the Nasdaq? Just a cool 16.8% rally in the first three months of the year, the best such run since January 2021.
Week of March 27, 2023
- Equity markets were choppy again this week, walking a tightrope of ongoing troubles in the bank sector, and a less hawkish Fed. The S&P 500 finished up 1.4%, as gains across most sectors were dampened by weakness in banks and utilities.
- During the trials and tribulations of the past month, what has help up best? Communication services, technology and large caps. That is, areas of the market with valuations typically driven by interest rates (more on that below).
- Meantime, the TSX added 0.6%, with banks, industrials and utilities weighing heavier.
Week of March 20, 2023
- Equity markets endured a volatile week amid ongoing trouble in the bank sector.
- The S&P 500 finished up 1.4%, as sharp rallies in technology and telecom services outweighed another slide in financials.
- Lower bond yields fueled higher-beta stocks despite trouble elsewhere. The TSX, however, was down 2% as banks and energy weighed heavier.
Week of March 13, 2023
- Equity markets slid this week as trouble in the banking sector pushed the Fed, Bank of Canada and economic data to the background.
- The S&P 500 fell 4.5%, with all sectors in the red.
- The banks were thumped 11.5%, with some even larger spills in the smaller regional bank group.
Week of March 6, 2023
- Equity markets rebounded this week amid relative calm on the economic data and monetary policy fronts.
- The S&P 500 rose 1.9%, led by a mix of materials, communication services and industrials, while defensive sectors like consumer staples, utilities and health care lagged.
- The data flow was largely a wash this week, with durable goods orders and pending home sales posting solid gains in January, the services ISM holding well in expansion territory, but the manufacturing ISM showing continued weakness and auto sales slipping in February.
Week of February 27, 2023
- Stocks continue to struggle with the prospect of higher-for-longer interest rates. The S&P 500 fell 2.7% this week, and is suddenly down 5% from the February high.
- All sectors but energy were in the red, with consumer discretionary and telecom lagging the pack.
- Meantime, the TSX gave back 1.4%, holding up better thanks to a similar gain in the higher-weighted energy sector.
Week of February 20, 2023
- Equity markets pulled back this week, alongside sticky inflation and a shift in expectations toward more Fed rate hikes.
- The S&P 500 fell 0.3%, with energy deep in the red.
- The TSX dipped 0.5% despite a surge in health care.
Week of February 13, 2023
- Equity markets pulled back this week, with light data flow and a wave of Fed speakers arguing for elevated rates through the year.
- The S&P 500 gave back 1.1%, with all sectors but energy in the red.
- The TSX was down 0.7%, with health care down sharply, offsetting gains in energy and consumer staples.
Week of February 6, 2023
- The Federal Reserve raised rates by 25 bps this week, as expected; it reiterated that “ongoing increases in the target range will be appropriate”; and Chair Powell tried to talk up further rate hikes and labour-market tightness in his press conference. But the market wasn’t buying it (or rather, selling it), as risk assets and Treasuries both rallied strongly.
- The S&P 500 rose 1.6% on the week, and the Nasdaq rallied 3.3% with high-beta names in technology and communication services leading the charge. The TSX lagged in this charged environment, gaining just 0.2% as energy and defensives slumped. Ten-year Treasury yields fell just over 10 bps before the Friday payrolls report and even Bitcoin lurched higher post-Fed.
- Put it this way: If the Fed is concerned about easing financial conditions while their inflation fight is still underway, they took a step back this week.
Week of January 30, 2023
- Equity markets rallied this week on hopes of a soft landing for the economy.
- The S&P 500 rose 2.5%, with consumer discretionary, banks and technology leading the pack. Defensives (i.e., staples and health care) lagged, consistent with the broader market move back into riskier assets in recent weeks. On the year, the S&P 500 has now calmly added 6%, while the Nasdaq has popped 11%.
- Meantime, the TSX gained 1.0% as technology, health care and financials were all firmly higher. Rate-sensitive sectors (see REITs especially) have shot out of the gate with a 10% gain so far this year, and this week’s 25 bp hike-and-pause by the BoC helped the cause.
Week of January 23, 2023
- Equity markets struggled this week, as a soft run of economic data stoked slowdown concerns, while the U.S. ran into the debt ceiling, setting up possibly months of headlines and negotiation while extraordinary funding measures are used.
- The S&P 500 finished down 0.7%, with industrials, utilities and consumer staples lagging.
- The TSX added 0.7%, outperforming on the back of higher energy and technology sectors, and much better results across the rest of the spectrum.
Week of January 16, 2023
- Equity markets have rallied out of the gate in 2023, offering some hope that the dark days of 2022 are behind us from an asset price perspective.
- Recall that last year was historically bad for investors of most risk profiles. The S&P 500 fell more than 19%; 10-year Treasury total returns were -16.4%; and the combined 60/40 portfolio return of those two assets was the worst on a total return basis since at least 1970.
- We’ve simply never seen a year with both sides of the market down in sync like that, let alone punished so significantly.
Week of December 19, 2022
- Equity markets slumped this week, as the Federal Reserve remained hawkish, and a cooler CPI report wasn't enough to trigger a sustained rally.
- The S&P 500 fell 2.1%, with all but the energy sector in the red. Consumer discretionary and technology lagged, as they have done for most of the year.
- Meantime, the TSX gave back 2.5% with declines spread across all sectors.
Week of December 12, 2022
- Equity markets were down this week, alongside a run of lower-tier economic data, a further slide in oil prices and a Bank of Canada rate hike.
- The S&P 500 gave back 3.4%, with all sectors in the red. Energy, banks and telecom sat at the bottom of the pack.
- The TSX was down 2.6%, a curious outperformance in a week that saw oil prices get clipped hard. Canadian energy stocks were down a more modest 5.8% compared to an 8.4% spill in the U.S., while some rate-sensitive sectors held up relatively well.
Week of December 5, 2022
- Equity markets were modestly changed this week, despite plenty of volatility, including a strong (maybe curious) rally on the back of a speech from Fed Chair Powell.
- The S&P 500 rose 1.1% when all was done, while the TSX added 0.5%.
- Canadian bank earnings got underway to mixed results, and the sector lagged on the week, down 1.0%, although there were a few chunky dividend increases.
Week of November 28, 2022
- The S&P 500 rose 1.5%, led by utilities, materials and financials.
- Rate-sensitives gained alongside another drop in 10-year Treasury yields, down another 15 bps.
- Meantime, the TSX rose 2.0%, with all but health care in on the gains.
Week of November 21, 2022
- Equity markets slipped this week, giving back some momentum after last week’s post-CPI surge.
- The S&P 500 fell 0.7%, as consumer discretionary, banks and energy lagged.
- The TSX was down 0.6% after running right into its 200-day moving average.
Week of November 14, 2022
- Equity markets rallied sharply last week, as a softer-than-expected U.S. CPI report was just what the market needed.
- The S&P 500 jumped 5.9%, while the Nasdaq surged 8.1%.
- Despite plenty of noise elsewhere—see the midterm election and an imploding crypto market—inflation was the key for equities.
Week of November 7, 2022
- The S&P 500 finished the week 3.3% lower compared to last Friday, snapping a strong run in the back half of October.
- Sector-wise, energy led the few areas that managed to remain in positive territory, though they were handily offset by big declines in telecom, tech and consumer discretionary.
- The TSX also declined, but to a lesser extent, dipping 0.1% from last Friday’s close, supported in part by renewed strength in oil prices (WTI surged above $92 for the first time in about a month) and the government’s moderately positive fall fiscal update.
Week of October 31, 2022
- Equity markets rallied again this week, with a drop in long-term bond yields helping against very mixed earnings results.
- The S&P 500 jumped 4.0%, led by a mix of industrials, consumer staples and financials, while all remaining groups but telecom managed to post gains.
- The TSX rose 3.2%, with technology jumping more than 8% on the week.
Week of October 24, 2022
- Markets continued to struggle across the spectrum this week under the weight of inflation and central bank tightening prospects, but rallied late on chatter about an eventual pause by some Fed officials.
- The S&P 500 rose 4.7% after a sharp Friday rally, while the TSX was up 2.9%.
Week of October 17, 2022
- Equity markets were challenged with another volatile week, alongside ongoing uncertainty in the U.K. and another sticky U.S. inflation report.
- The S&P 500 fell 1.6%, with gains in banks and consumer staples outweighed by declines in consumer discretionary and technology.
- The TSX gave back 1.4%, as 3%-plus slumps in energy and materials dragged on the index.
Week of October 10, 2022
- Equity markets endured a volatile week, flying out of the gate early, but eventually succumbing to the reality of a still-hawkish Fed and higher oil prices.
- The S&P 500 added 1.5% when it was all done, while the TSX gained 0.8%. Energy led on both sides of the border.
- Energy stocks rallied sharply on the week, with the sector up 9% in Canada and 14% in the U.S, but the move was a big negative for almost all others as the inflation battle rages.
Week of October 3, 2022
- Markets continued their wild ride this week, with last week’s hawkish Fed announcement pressuring yields higher and stocks lower, while a crisis broke out in the UK
- The action provided some stark reminders on the conduct of fiscal policy and the pricing of assets
Week of September 26, 2022
- Equity markets slid further this week, as the Federal Reserve stayed firmly hawkish, recession risks continued to build and geopolitical tensions weighed on sentiment.
- The S&P 500 fell 4.6%, and is now close to testing the low set in June. All sectors were in the red, with energy, consumer discretionary and banks hardest hit.
- Meantime, the TSX was down 4.7% on the week, with a dive in energy stocks coming alongside a move in WTI oil prices below $80.
Week of September 19, 2022
- Equity markets slid this week, with core inflation momentum likely to force another outsized Fed rate hike next week.
- The S&P 500 gave back 4.8%, with deep declines across all sectors, including 6%-plus drops in technology, industrials, telecom and materials.
- Meantime, the TSX fell 2.0%, helped by shallower declines in energy and banks.
Week of September 12, 2022
- Equity markets rallied strongly this week, ending the run of three consecutive weeks in the red despite a wave of hawkish talk and action by central banks.
- The S&P 500 rose 3.6%, led by strong gains in consumer discretionary, banks and materials, while energy lagged.
- Meantime, the TSX added 2.6% as broad-based gains outweighed a 0.6% slip in energy as oil prices ended the week little changed.
Week of September 5, 2022
- Stocks slumped this week, still drying off the cold water tossed on the market by Fed Chair Powell in Jackson Hole.
- The S&P 500 slipped 3.3%, with technology and materials posting the deepest declines, and industrials not too far ahead. All other sectors were also in the red on the week.
- Meantime, the TSX gave back 3.0%, with materials and energy dragging as oil prices fell. Consumer staples posted the lone gain in a defensive week.
Week of August 29, 2022
- After reaching a 4-month high back on August 16, the S&P 500 quickly lost momentum amid intense volatility, ending the week 4.0% lower.
- Meantime, the tech-heavy Nasdaq wilted 4.4% while the Dow finished with a 4.2% loss.
Week of August 22, 2022
- Equity market momentum fizzled this week amid a mixed bag of economic indicators. The S&P 500 added 0.1% by late Friday, with a mixed sector performance.
- Meantime, the TSX was up 0.4%, as declines in technology and materials offset gains elsewhere. The economic data fell pretty evenly on both sides of the ledger, with lower jobless claims and firm industrial production on one side, offset by slumping home sales, building activity and flat retail sales on the other.
- After this week, the S&P 500 is up 16% from its mid-June low, so let’s take a look at what is working, and what’s not.
Week of August 15, 2022
- Equity markets rose this week, catching some relief from a softer-than-expected July Consumer Price Index (CPI) report.
- The S&P 500 rose 1.5%, with energy and banks posting outsized gains.
- Meantime, the TSX added 1.9%, as a rebound in WTI oil prices lifted the energy sector 4.3% on the week.
Week of August 8, 2022
- Equity markets were mixed this week, as last week’s post-FOMC rally carried over, but eventually ran into the reality of continued tightening.
- The S&P 500 added 0.4% when all was said and done, and is now down 13% on the year after a strong bounce off the June lows.
- Consumer discretionary, technology and telecom services posted modest gains, while energy was hammered almost 7% alongside a drop in WTI prices to below $88 at one point. Don't overlook the importance of oil prices here, as weakness helps the inflation backdrop immensely, and non-energy stocks have rallied on any price declines.
Week of August 1, 2022
- Equity markets rallied this week despite a second-consecutive decline in quarterly U.S. real GDP, and an outsized 75 bp rate hike by the Federal Reserve.
- For markets that have been under heavy pressure this year, largely because of higher rates and weakening growth, this might rightfully seem a tad counterintuitive.
Week of July 25, 2022
- Equity markets rallied this week, with a sense that inflation pressure is easing in some quarters.
- The S&P 500 rose 2.5% to within striking distance of the 4,000 level, led by strong gains in consumer discretionary, industrials and technology. The TSX added 3.2%, as banks rebounded more than 4%.
- While acute inflation pressure might be near peaking, it appears to be coming with consequences as the economic data, from housing to regional Fed activity, were largely on the weak side of the ledger. As such, 10-year Treasury yields fell to below 2.8%, deepening the yield curve inversion with the 2-year.
Week of July 18, 2022
- Equity slipped this week alongside some key U.S. inflation data and an even sharper-than-expected Bank of Canada rate hike.
- The S&P 500 fell 0.9%, with energy and telecom deepest in the red. That leaves the index down 18.9% on the year, with all sectors but energy in the red.
- Meantime, the TSX was down 3.3%, with banks losing almost 6% on the week, and now 15.6% on the year—an inverted yield curve and flagging housing activity can't be helping there. Note that the TSX has now lagged the S&P 500 over the past three months, as some of the inflation trade unwinds.
Week of July 11, 2022
- Equity markets bounced this week, thanks to some prior relief from bond yields, and a feeling that inflation could be peaking—although we’re still far from clear sailing.
- The S&P 500 rose 1.6% by mid-day Friday, led by strong gains in consumer discretionary, technology and telecom services—all areas of the market that have been in distress in recent months. Energy, utilities and materials all lagged.
- Meantime, the TSX added 0.8%, and has suddenly underperformed the S&P 500 over the past few months. While health care, technology and consumer sectors were strong, a selloff in energy weighed heavy on the index.
Week of July 4, 2022
- Here are a few simple but important points to note as we move into the second half of the year:
- The S&P 500 has slid into bear market territory, down more than 20% from its closing high.
- The forward price-to-earnings ratio on the S&P 500 has fallen to just below 16, a 6-point compression since last fall.
- Earnings expectations to this point have held firm, with calendar-2022 growth in S&P 500 profits currently expected at just under 10%, compared to around 9% coming into the year.
Week of June 27, 2022
- Equity markets rebounded this week, as a pullback in bond yields and oil prices helped sentiment.
- The S&P 500 jumped 6.4%, with all sectors but energy posting strong gains. Consumer discretionary and technology, under heavy pressure for much of the year, posted gains in excess of 7%.
- 10-year Treasury yields backed off to just above 3% at one point this week, from 3.5% 10 days ago. The market is starting to sense that near-term Fed tightening will relent to eventual easing as the economy weakens. Meantime, WTI finished the week at the $108 mark, down from north of $120 earlier in the month.
Week of June 20, 2022
- The cold reality of rapidly-tightening monetary policy continued to set in this week, with equity markets sliding and the Federal Reserve notching the largest single rate hike since 1994.
- The S&P 500 fell 5.1% with all sectors deep in the red, and the broad index dipping into official bear market territory.
- The TSX was down 2.5%, with similar widespread declines across all groups.
Week of June 13, 2022
- Equity markets slumped this week, and it’s the same story on repeat—inflation is persisting, and central banks need to fight it.
- The S&P 500 fell 5.1%, with sharp declines in banks, technology and consumer discretionary.
- Meantime, the TSX was down 2.5%, with health care down more than 10%, while all other sectors were also in the red.
Week of June 6, 2022
- Equity markets were mixed this week, after the reality of an extremely tight job market and persistent inflation dragged stocks back down on Friday.
- The S&P 500 fell 1.2% on the week, with health care and financials lagging.
- The TSX added 0.2%, with solid gains in energy, industrials and consumer staples lending support.
Week of May 30, 2022
- Equity markets rebounded this week, helped by a pullback in long-term interest rates and some reassuring earnings reports.
- The S&P 500 jumped 6.6%, with hefty gains across banks, energy, tech and consumer discretionary. The economic data run had a soft-ish tint to it, which helped pull down yields. The 10-year Treasury yield closes the week at 2.75%, down almost 40 bps from the early-May high. With 2-year yields edging down as well, to 2.47%, the 2s10s curve remains positive at +28 bps.
- Stocks and the bond market both seem to still be grappling with how this bout of inflation and tightening will evolve beyond this year—that is, will the valuation adjustment to higher rates so far seen in stocks progress into an earnings slump as well? Time, as they say, will tell.
Week of May 23, 2022
- Equity markets continued to slump this week with little to change the narrative on stubborn inflation, tightening monetary policy and cooling growth.
- The S&P 500 fell 3.0% on the week, while the Nasdaq gave back another 3.8%.
- Canadian stocks held up, however, with the TSX adding 0.5%. The outperformance was largely because of less exposure (and less weakness) to consumer stocks that got clobbered this week. And so, the valuation reset continues.
Week of May 16, 2022
- Equity markets struggled again this week, with no sign of relief on the inflation or monetary policy fronts.
- The Nasdaq is well into bear market terrain, down almost 30% from its high at one point, the S&P 500 is flirting with that territory, down 18% before a Friday rally, while the much sturdier TSX even wandered into the correction camp, down 10.8% before a bounce to close out the week.
Week of May 9, 2022
- Equity markets fell again this week in volatile trading, as the Federal Reserve raised rates 50 bps, and a made it perfectly clear that more like-sized moves are coming.
- The S&P 500 was down 0.2%, but with some wild swings around the Fed meeting. Canadian stocks gave back 0.6%, while the Nasdaq shed 1.5%, including a 5% spill on Thursday.
- The reality of tighter policy and a mopping up of liquidity seems to have now sunk in for equity investors.
Week of May 2, 2022
- Equity markets endured a wild week of trading, with earnings results, tighter policy and slowing growth all piling on to drag markets down.
- The S&P 500 fell 3.3%, and looks to be in some distress, closing below the lows set in mid-March. Consumer discretionary and banks led the declines on the week, and the index is now down 1.9% from year-ago levels, and 13.3% in 2022.
- Meantime, the TSX has been pulled out of hiding as well, down 2% on the week as a number of names that have held up well are suddenly also struggling. Canadian stocks are still up 7.8% from a year ago, but are off 2.2% in 2022.
Week of April 18, 2022
- The S&P 500 fell 2.4%, with gains in energy and materials outweighed by weakness in technology, telecom and banks.
- Earnings season is just getting underway, and it will be an important one with valuations currently getting tested by higher interest rates.
- Meantime, the TSX inched up 0.1%, thanks to a heavy weight in energy and materials.
Week of April 11, 2022
- Equity markets struggled this week, with another round of hawkish talk and higher bond yields weighing.
- The S&P 500 fell 1.3%, with technology and consumer discretionary deepest in the red. Defensive sectors, along with energy, were firm again.
- Meantime, the TSX dipped 0.4%, as rallies in consumer staples, energy and telecom offset declines in banks, tech and industrials.
Week of April 4, 2022
- Equity markets were mixed this week, closing out a very volatile quarter mostly in the red.
- The S&P 500 added 0.1%, as banks shed more than 6% on the week, while energy, industrials and materials were also weaker. The defensive stalwarts (utilities consumer staples and health care), however, posted gains. With Q1 in the books, the index sits down 4.6% on the year, but still up 13% from year-ago levels.
- Meantime, the TSX gave back 0.2% this week, but held up much better through the quarter, still hanging on to a 3.4% advance in 2022.
Week of March 28, 2022
- Equity markets extended their rebound this week, despite a wave of hawkish central bank speakers who further reinforced that rate hikes are coming in hot.
- The S&P 500 rose 1.8%, led by a 7.4% jump in energy, along with gains in all other sectors but health care.
- The TSX added 0.9%, as a pullback in banks and tech held back the Canadian index.
Week of March 21, 2022
- Equity markets rallied sharply this week, despite ongoing geopolitical uncertainy and an even more hawkish Federal Reserve.
- The S&P 500 bounced 6.2%, led by 7%-plus rebounds in financials, consumer discretionary and technology. The index has run right back into its 200-day moving average, so next week could be a technical test.
- Meantime, the TSX added a much more modest 1.7% on the week, but keep in mind that Canadian stocks have held up extremely well, with the index closing the week at a record high.
Week of March 14, 2022
- Equity markets endured another choppy week, which included a wild ride for oil prices amid ongoing uncertainty in Ukraine.
- The S&P 500 fell 2.9%, with all sectors but energy in the red.
- The TSX added 0.3%, another relative win, as gains in materials, energy and utilities outweighed softness almost everywhere else.
Week of March 7, 2022
- Equity markets continued their volatile trade this week amid ongoing geopolitical uncertainty and monetary policy tightening.
- The S&P 500 dipped 1.6% by late Friday, with strength in energy and utilities partly offsetting deep declines in technology and banks. The market continues to trade poorly, with the index stuck below its 50- and 200-day averages, and a crossover looming.
- Fundamentally, geopolitical uncertainty, inflation, tighter policy and a flat yield curve don’t paint a rosy picture. That said, various market sentiment metrics are now probing bearish reading typically seen around correction lows, which is usually a necessary (but not sufficient) condition to find a turning point.
Week of February 28, 2022
- Russia’s invasion of Ukraine came as another forceful shot to an equity market that was already grappling with persistent inflation pressure and a looming monetary policy tightening cycle.
- No bother, the S&P 500 finished the week up 0.8%, after some wild intraday swings, but still sits down 8% on the year.
- Defensives led on the week, while banks and consumer stocks lagged. The Nasdaq swung even more dramatically to finish up 1.1%, while the TSX rose 0.5%.
Week of February 21, 2022
- Equity markets posted another choppy week with more inflationary North American data pointing to rate hikes, as well as ongoing will-they-or-won’t-they fears of a Russian invasion of Ukraine.
- The S&P 500 closed the week down 1.6% with consumer staples posting the only gain among sectors. Meantime, the TSX dropped 2.5% as one of the worst performers of the week, though it remained firmly above its 200-day moving average.
- A flatter yield curve sparked fears of a recession; while the 10s/2s spread has narrowed this month, we’d note that at around 50 bps, it’s currently off Monday’s lows.
- Gold rallied this week, though it has stepped back from earlier highs, and oil ended a volatile week up 2% to around $91.70
Week of February 14, 2022
- Equity markets were choppy this week, as the market readies itself for Federal Reserve rate hikes, and on word that Russia will invade Ukraine.
- The S&P 500 was down 1.7% by late Friday, with gains in banks, materials and energy offset by weakness across most other groups.
- Meantime, the TSX held up better, as it has been doing, up 1.2% on the week. In general, financials were supported by this week’s sharp backup in 10-year Treasury yields, which pushed above 2% for the first time since 2019, while gold and oil rallied.
Week of February 7, 2022
- Equity markets are still coming to grips with the looming tightening cycle and more persistent inflation backdrop.
- The S&P 500 rose 1.5% in a choppy week including some high-profile earnings-related selloffs, while the TSX rose 2.6%.
- While an abrupt change in policy and multi-decade highs on inflation are tough pills to get down, so far the market seems to be doing just about what it should be doing.
Week of January 31, 2022
- U.S. equities snapped a three-week losing streak after a Herculean late-Friday rally, with the S&P rising 0.8%.
- In Canada, the TSX also popped its head above water on Friday, rising 0.6%.
- Strength in energy, consumer staples and telecom outweighed weakness in health care and materials.
Week of January 24, 2022
- Equity markets slid this week, as froth continues to come out of the market ahead of Federal Reserve tightening.
- The S&P 500 fell 5.7%, with all sectors in the red.
- The Nasdaq fared worse, down a steep 7.6% on the week with some pandemic darlings—think Peloton, Netflix, etc.— under heavy assault
- Meantime, with less exposure to the most heated areas of the market, the TSX 'outperformed' again, down a more modest 3.4%.
Week of January 17, 2022
- Equity markets struggled this week amid a heavy wave of hawkish talk from the Federal Reserve.
- The S&P 500 dipped 0.3%, with strength in energy offset by declines across most other groups.
- The TSX outperformed, gaining 1.3% thanks to a rebound in oil prices and another upward move in the sector, along with banks.
Week of January 10, 2022
- Equity markets were tripped up this week by a more hawkish Federal Reserve, while economic data continue to point to strong growth and a tightening job market.
- The S&P 500 slipped 1.8% by late Friday, but the high-flying Nasdaq was crunched a harder 4.1%.
- The TSX fell a more modest 1%, as strength in energy and banks provided support.
Week of December 20, 2021
2021: A Bullish Odyssey
- Equity markets faced multiple waves of COVID, multi-decade highs on inflation and an abrupt shift in the monetary policy outlook. Yet, thanks to scorching demand, powerful earnings and some valuation expansion, stock markets powered right ahead.
- Stocks rode the wave of broad asset price inflation in 2021, with the S&P 500 currently up a toasty 23% on the year.
- This year, energy was the top performing sector on both sides of the border, up more than 40% in the U.S. at this point, and almost 40% in Canada.
- Consistent with the theme of almost everything running in 2021, the relative performance of large and small companies nearly neutralized this year.
- At this point, the yield curve has flattened somewhat, but is still steep enough to suggest that the Fed can easily raise rate three times next without much of an issue—perhaps that’s why stocks completely shrugged off this week’s more hawkish shift by the Fed to close out 2021.
Week of December 13, 2021
- The S&P 500 finished up a strong 3.8%, on the week and back into record territory, after a brief and mini 4% slip that seems to classify as a correction these days.
- All sectors posted gains, with technology leading the pack up 6% on the week.
- Meantime, the TSX added a more modest 1.2% and has now fallen noticeably behind over the past few months.
Week of December 6, 2021
- Equity markets are stumbled around this week, trying to reconcile a potential growth hit from any Omicron-related disruptions, against the Fed’s growing realization that policy is behind the curve.
- The S&P 500 finished down 1.2%, but managed a solid rally later in the week as sentiment stabilized.
- Note that, despite the downdraft in recent weeks, equities have barely budged, with the S&P 500 down only 3.5% on net from its record high. Weakness over that period has been concentrated in communication services, energy
and materials, while utilities have held up well.
Week of November 29, 2021
- Equity Markets slid this week, including a deep Friday selloff in thin holiday trading that will dampen spirits.
- The S&P 500 fell 2.2% on the week, finished off with a 2.3% decline in shortened Friday trading. Consumer Discretionary, Telecom and Technology were all down more than 3%, while Energy was the lone sector to hang on to a gain despite a slide in oil price to end the week.
- The TSX was down 1.9% by late Friday, with all sectors in the red, and European Markets were down more than 5%.
Week of November 23, 2021
- Equity Markets were mixed again week, amid a general risk-off tone in global markets.
- The S&P 500 added 0.3%, as gains in Consumer Discretionary and Tech outweighed declines across most other sectors, some of them deep.
- The TSX gave back 1.0%, as Healthcare was thumped by almost 10% on the week.
Week of November 15, 2021
- Equity markets were mixed this week, with hot inflation still top of mind for investors.
- The S&P 500 slipped 0.3%, as a 3.2% decline in Consumer Discretionary was a drag, while Energy and Utilities also struggled.
- The TSX outperformed on the week, adding a solid 1.5% thanks to outsized rallies in Healthcare, Technology and Materials.
Week of November 8, 2021
- Equity markets rose this week, with strong economic data still flowing and the Federal Reserve largely meeting market expectations.
- The S&P 500 rose 2.0%, led by consumer Discretionary and Technology, while Banks and Healthcare lagged.
- All major sectors posted gains, with consumer stocks (both staples and discretionary) leading the pack.
Week of November 1, 2021
- Equity markets were mostly higher this week, seemingly unphased by all the inflation, disappointing economic growth and talk of looming tapering and rate hikes.
- The S&P 500 rose 1.3%, led by Consumer Discretionary and Telecom, while Banks lagged.
- The TSX dipped 0.8% as most sectors were down on the week.
Week of October 25, 2021
- Equity markets rose this week, quickly undoing the mini-correction that plagued much of September.
- The S&P 500 rose 1.6%, led by Banks and Healthcare. The index quietly strung together seven consecutive daily gains before dipping Friday, taking it back to record levels.
- Meantime, the TSX rose 1.4% on the week, led by a 5% jump in industrials. Canadian stocks have posted only one daily decline this month, as we push into the final week of trading—so far, the friendlier part of the calendar seems to be just that.
Week of October 18, 2021
- The S&P 500 Index rose 1.8%. Inflation fears abated while corporate earnings got off to a strong start, boosting risk assets. Technology stocks saw its strongest rally after a difficult September and contributed the most to gains, while Financials also had a strong week as banks posted record investment banking profits.
- The S&P/TSX Index surged 2.5%. Resource prices helped lift the broad index as oil prices (WTI Crude) reached its highest level since 2014, crossing $80/barrel. Every sector was positive, while bank stocks tracked their U.S. counterparts higher despite a retreat in longer-term rates.
- Beyond the sectors, value is now coming off the floor relative to growth, after the latter staged a strong comeback through the summer.
- Europe’s STOXX 600 gained 2.7%, Japan’s Nikkei 225 Index soared 3.6%, and China’s CSI 300 Index returned a modest 0.3%.
Week of October 11, 2021
- Equity markets rebounded this week as debt ceiling concerns were relieved for now, and economic data were generally solid.
- The S&P 500 rose 0.8% on the week, with Energy and Banks leading the advance. Defensives lagged, along with Technology.
- Beyond the sectors, value is now coming off the floor relative to growth, after the latter staged a strong comeback through the summer.
- The TSX rose 1.3%, led by a 3.5% jump in Energy stocks as WTI pushed through $80 at one point.
Week of October 4, 2021
- Equity markets slipped this week amid ongoing inflation pressure, debt ceiling risks and a broader cooling of market sentiment.
- The S&P 500 was down 2.2% on the week, with Healthcare and Technology slumping.
- The TSX fell 1.2% as a near -7% slide in Technology was offset by higher Energy stocks.
- Europe’s STOXX 600 gained 0.3%, Japan’s Nikkei 225 Index fell 0.8%, and China’s CSI 300 Index was down 0.1%.
Week of September 27, 2021
- The S&P 500 Index rose 0.5%. Energy stocks once again led gains due to strong oil prices, while a steeper yield curve also boosted Bank Stocks at the expense of defensive, rate-sensitive sectors like Utilities and Real Estate.
- The S&P/TSX Index fell 0.4%. The Energy sector was the strongest, while the all important Financials sector also managed a small gain as banks responded positively to higher yields. However, weakness in the Materials and Technology sectors proved too much to offset as the broad market suffered a third weekly decline.
- Europe’s STOXX 600 gained 0.3%, Japan’s Nikkei 225 Index fell 0.8%, and China’s CSI 300 Index was down 0.1%.
Week of September 20, 2021
- The S&P 500 Index lost 0.6%. Energy stocks rallied on weak U.S. Crude inventory data, while Consumer Discretionary also managed to stay in the green thanks to travel-related stocks. Every other sector was negative, with Industrials, Utilities and Materials being the worst performers. August inflation data moderated, coming in below estimates after prices accelerated for much of the year.
- The S&P/TSX Index fell 0.7%. The Energy sector managed to stay positive, while Real Estate also held up to continue its impressive year. Materials contributed heavily to losses due to its reliance on faltering precious metal prices, while a sell-off in grocers and food companies hurt the Consumer Staples sector.
- Europe’s STOXX 600 lost 1%, Japan’s Nikkei 225 Index rose 0.4%, and China’s CSI 300 Index tumbled 3.1%.
Week of September 13, 2021
- The S&P 500 Index lost 1.7%, Every sector was negative in a shortened trading week as growth and inflation concerns hurt sentiment. Real Estate was the worst sector as investors took profits, although it remains the top performing sector YTD, while Technology was the largest detractor from weekly performance due to its size.
- The S&P/TSX Index fell 0.9%. Canadian equities were also caught in a broad sell-off, although the Energy sector notably managed to stay positive. The all-important Financials sector suffered marginal losses, helping the TSX outperform its U.S. counterpart despite losses in the Materials and Industrials sectors.
- Europe’s STOXX 600 lost 1.2%, Japan’s Nikkei 225 Index soared 4.3%, while China’s CSI 300 Index rallied 3.5%.
Week of September 6, 2021
- The S&P 500 Index rose 0.6%. Defensive sectors like Real Estate, Utilities and Consumer Staples were among the top performers as employment data from the Labor Department disappointed. Weak employment data also gave investors confidence that the Fed would hold off on tapering asset purchases, boosting Technology stocks.
- The S&P/TSX Index rallied 0.9%, setting a new high despite downbeat GDP data. Stronger resource prices helped boost the loonie, as well as the Energy and Materials sectors. Real Estate stocks continued their strong run while the Financials sector was the main laggard as bank stocks declined.
- Europe’s STOXX 600 fell 0.1%, Japan’s Nikkei 225 Index soared 5.4%, while China’s CSI 300 Index was up 0.3%.
Week of August 30, 2021
- The S&P 500 Index rose 1.5%. All eyes were on the Federal Reserve as Chairman Jerome Powell signaled little interest in raising rates in his Jackson Hole speech. Risk assets rallied—technology and internet stocks soared as the Nasdaq Composite Index hit new highs, while defensive sectors like Real Estate, Consumer Staples and Utilities all declined.
- The S&P/TSX Index rallied 1.5%. Commodity sectors helped drive returns as Materials and Energy were among the leaders, with the latter feasting on a 10% climb in WTI oil prices. Trillium Therapeutics also made headlines by soaring 180% to lift the Health Care sector, after news broke of its acquisition by Pfizer in a US$2.26 billion deal.
- Europe’s STOXX 600 added 0.75%, Japan’s Nikkei 225 Index gained 2.3%, while China’s CSI 300 Index was up 1.2%.
Week of August 23, 2021
- The S&P 500 Index lost 0.6% in a risk-off week. Economically sensitive sectors like Energy, Materials and Financials were the hardest hit as the spread of the Delta variant continues to depress commodity prices. Defensive sectors like Utilities, Real Estate and Consumer Staples led gains, while the all-important Technology sector managed a small gain thanks to Microsoft and Nvidia.
- The S&P/TSX Index fell 0.9%. Its reliance on commodity sectors proved detrimental as Energy and Materials fell in tandem with oil and precious metals prices, while the loonie depreciated heavily against the USD. Financials were steady despite lower yields, as the big banks held firm relative to their U.S. counterparts.
- Europe’s STOXX 600 pulled back 1.5%, Japan’s Nikkei 225 Index was down 3.5%, while China’s CSI 300 Index declined 3.6%.
Week of August 16, 2021
- The S&P 500 Index gained 0.7%, setting another new high. Energy was the only sector negative as the outlook for oil demand remains uncertain in light of rising coronavirus cases. Financials continued its march and is now the top-performing sector on a YTD and 1-year basis. The Technology sector was let down by semiconductor stocks.
- The S&P/TSX Index rose 0.2%. Dividend stocks led as the Financials sector rallied with their U.S. counterparts. The Real Estate sector also continued its strong run, while the Health Care struggled amid a sell-off in marijuana stocks.
- Europe’s STOXX 600 added 1.3%, Japan’s Nikkei 225 Index was up 0.6%, while China’s CSI 300 Index managed a 0.5% gain despite more regulatory pressure from Beijing.
Week of November 23
- Equity markets were mixed again week, amid a general risk-off tone in global markets.
- The S&P 500 added 0.3%, as gains in Consumer Discretionary and Tech outweighed declines across most other sectors, some of them deep.
- The TSX gave back 1.0%, as Healthcare was thumped by almost 10% on the week.
Week of November 15
- Equity markets were mixed this week, with hot inflation still top of mind for investors.
- The S&P 500 slipped 0.3%, as a 3.2% decline in Consumer Discretionary was a drag, while Energy and Utilities also struggled.
- The TSX outperformed on the week, adding a solid 1.5% thanks to outsized rallies in Healthcare, Technology and Materials.
Week of November 8
- Equity markets rose this week, with strong economic data still flowing and the Federal Reserve largely meeting market expectations.
- The S&P 500 rose 2.0%, led by consumer Discretionary and Technology, while Banks and Healthcare lagged.
- All major sectors posted gains, with consumer stocks (both staples and discretionary) leading the pack.
Week of November 1
- Equity markets were mostly higher this week, seemingly unphased by all the inflation, disappointing economic growth and talk of looming tapering and rate hikes.
- The S&P 500 rose 1.3%, led by Consumer Discretionary and Telecom, while Banks lagged.
- The TSX dipped 0.8% as most sectors were down on the week.
Week of October 25
- Equity markets rose this week, quickly undoing the mini-correction that plagued much of September.
- The S&P 500 rose 1.6%, led by Banks and Healthcare. The index quietly strung together seven consecutive daily gains before dipping Friday, taking it back to record levels.
- Meantime, the TSX rose 1.4% on the week, led by a 5% jump in industrials. Canadian stocks have posted only one daily decline this month, as we push into the final week of trading—so far, the friendlier part of the calendar seems to be just that.
Week of October 18
- The S&P 500 Index rose 1.8%. Inflation fears abated while corporate earnings got off to a strong start, boosting risk assets. Technology stocks saw its strongest rally after a difficult September and contributed the most to gains, while Financials also had a strong week as banks posted record investment banking profits.
- The S&P/TSX Index surged 2.5%. Resource prices helped lift the broad index as oil prices (WTI Crude) reached its highest level since 2014, crossing $80/barrel. Every sector was positive, while bank stocks tracked their U.S. counterparts higher despite a retreat in longer-term rates.
- Beyond the sectors, value is now coming off the floor relative to growth, after the latter staged a strong comeback through the summer.
- Europe’s STOXX 600 gained 2.7%, Japan’s Nikkei 225 Index soared 3.6%, and China’s CSI 300 Index returned a modest 0.3%.
Week of October 11
- Equity markets rebounded this week as debt ceiling concerns were relieved for now, and economic data were generally solid.
- The S&P 500 rose 0.8% on the week, with Energy and Banks leading the advance. Defensives lagged, along with Technology.
- Beyond the sectors, value is now coming off the floor relative to growth, after the latter staged a strong comeback through the summer.
- The TSX rose 1.3%, led by a 3.5% jump in Energy stocks as WTI pushed through $80 at one point.
Week of October 4
- Equity markets slipped this week amid ongoing inflation pressure, debt ceiling risks and a broader cooling of market sentiment.
- The S&P 500 was down 2.2% on the week, with Healthcare and Technology slumping.
- The TSX fell 1.2% as a near -7% slide in Technology was offset by higher Energy stocks.
- Europe’s STOXX 600 gained 0.3%, Japan’s Nikkei 225 Index fell 0.8%, and China’s CSI 300 Index was down 0.1%.
Week of September 27
- The S&P 500 Index rose 0.5%. Energy stocks once again led gains due to strong oil prices, while a steeper yield curve also boosted Bank Stocks at the expense of defensive, rate-sensitive sectors like Utilities and Real Estate.
- The S&P/TSX Index fell 0.4%. The Energy sector was the strongest, while the all important Financials sector also managed a small gain as banks responded positively to higher yields. However, weakness in the Materials and Technology sectors proved too much to offset as the broad market suffered a third weekly decline.
- Europe’s STOXX 600 gained 0.3%, Japan’s Nikkei 225 Index fell 0.8%, and China’s CSI 300 Index was down 0.1%.
Week of September 20
- The S&P 500 Index lost 0.6%. Energy stocks rallied on weak U.S. Crude inventory data, while Consumer Discretionary also managed to stay in the green thanks to travel-related stocks. Every other sector was negative, with Industrials, Utilities and Materials being the worst performers. August inflation data moderated, coming in below estimates after prices accelerated for much of the year.
- The S&P/TSX Index fell 0.7%. The Energy sector managed to stay positive, while Real Estate also held up to continue its impressive year. Materials contributed heavily to losses due to its reliance on faltering precious metal prices, while a sell-off in grocers and food companies hurt the Consumer Staples sector.
- Europe’s STOXX 600 lost 1%, Japan’s Nikkei 225 Index rose 0.4%, and China’s CSI 300 Index tumbled 3.1%.
Week of September 13
- The S&P 500 Index lost 1.7%, Every sector was negative in a shortened trading week as growth and inflation concerns hurt sentiment. Real Estate was the worst sector as investors took profits, although it remains the top performing sector YTD, while Technology was the largest detractor from weekly performance due to its size.
- The S&P/TSX Index fell 0.9%. Canadian equities were also caught in a broad sell-off, although the Energy sector notably managed to stay positive. The all-important Financials sector suffered marginal losses, helping the TSX outperform its U.S. counterpart despite losses in the Materials and Industrials sectors.
- Europe’s STOXX 600 lost 1.2%, Japan’s Nikkei 225 Index soared 4.3%, while China’s CSI 300 Index rallied 3.5%.
Week of September 6
- The S&P 500 Index rose 0.6%. Defensive sectors like Real Estate, Utilities and Consumer Staples were among the top performers as employment data from the Labor Department disappointed. Weak employment data also gave investors confidence that the Fed would hold off on tapering asset purchases, boosting Technology stocks.
- The S&P/TSX Index rallied 0.9%, setting a new high despite downbeat GDP data. Stronger resource prices helped boost the loonie, as well as the Energy and Materials sectors. Real Estate stocks continued their strong run while the Financials sector was the main laggard as bank stocks declined.
- Europe’s STOXX 600 fell 0.1%, Japan’s Nikkei 225 Index soared 5.4%, while China’s CSI 300 Index was up 0.3%.
Week of August 30
- The S&P 500 Index rose 1.5%. All eyes were on the Federal Reserve as Chairman Jerome Powell signaled little interest in raising rates in his Jackson Hole speech. Risk assets rallied—technology and internet stocks soared as the Nasdaq Composite Index hit new highs, while defensive sectors like Real Estate, Consumer Staples and Utilities all declined.
- The S&P/TSX Index rallied 1.5%. Commodity sectors helped drive returns as Materials and Energy were among the leaders, with the latter feasting on a 10% climb in WTI oil prices. Trillium Therapeutics also made headlines by soaring 180% to lift the Health Care sector, after news broke of its acquisition by Pfizer in a US$2.26 billion deal.
- Europe’s STOXX 600 added 0.75%, Japan’s Nikkei 225 Index gained 2.3%, while China’s CSI 300 Index was up 1.2%.
Week of August 23
- The S&P 500 Index lost 0.6% in a risk-off week. Economically sensitive sectors like Energy, Materials and Financials were the hardest hit as the spread of the Delta variant continues to depress commodity prices. Defensive sectors like Utilities, Real Estate and Consumer Staples led gains, while the all-important Technology sector managed a small gain thanks to Microsoft and Nvidia.
- The S&P/TSX Index fell 0.9%. Its reliance on commodity sectors proved detrimental as Energy and Materials fell in tandem with oil and precious metals prices, while the loonie depreciated heavily against the USD. Financials were steady despite lower yields, as the big banks held firm relative to their U.S. counterparts.
- Europe’s STOXX 600 pulled back 1.5%, Japan’s Nikkei 225 Index was down 3.5%, while China’s CSI 300 Index declined 3.6%.
Week of August 16
- The S&P 500 Index gained 0.7%, setting another new high. Energy was the only sector negative as the outlook for oil demand remains uncertain in light of rising coronavirus cases. Financials continued its march and is now the top-performing sector on a YTD and 1-year basis. The Technology sector was let down by semiconductor stocks.
- The S&P/TSX Index rose 0.2%. Dividend stocks led as the Financials sector rallied with their U.S. counterparts. The Real Estate sector also continued its strong run, while the Health Care struggled amid a sell-off in marijuana stocks.
- Europe’s STOXX 600 added 1.3%, Japan’s Nikkei 225 Index was up 0.6%, while China’s CSI 300 Index managed a 0.5% gain despite more regulatory pressure from Beijing.