Big US firms are hinting toward recession.

📉Big US firms are hinting toward recession.💲

US equity markets started giving up last week’s gains as giant companies like Apple Inc. and Google Inc. hinted that they would slow down hiring in anticipation of slower product demand, underlining the elevated chance of US recession. The US central bank is likely to increase the interest rates by at least 75 basis points in their meeting this month. Last week, the Bank of Canada surprised the markets by increasing interest rates by one percent. S&P 500 and Nasdaq declined 0.84% and 0.81% respectively. 

North of the border, Canadian equities gained on the back of the energy sector as oil prices jumped back up to 100 a barrel as Saudi Arabia declined to make any commitments for future output increases. The weaker US dollar also helped push commodity prices higher. Canada’s S&P/TSX index added 1.09%.

Under pressure from higher interest rates, existing home sales in Canada fell by 5.6% in June vs. 4.8% estimated. This follows an 8.6% decline seen in May. The benchmark home prices fell 1.9% in June, the most significant monthly drop since the benchmark kicked off in 2005. Surging inflation, higher rates, and high level of housing prices could lead to prices to further decline.