July 5th 2022, 2:29:03 pm
(about a year ago)
😳North American market on a roller coaster as recession fears mount🙄
US stock markets started the week strong, erasing a portion of the loss incurred last week after the US central bank increased the interest by 0.75%. On Wednesday, however, S&P 500 snapped the two-day rally as Chairman of the Federal Reserve, Jerome Powell, underlined the Fed’s determination to bring the 8.6% inflation to their 2% target.
US S&P 500 and tech-heavy Nasdaq declined 0.13% and 0.15%, while Canada’s S&P/TSX composite lost 1.32% as oil prices tumbled, with West Texas Intermediate standing at 104.3 a barrel. The US 10-year Treasury yield hit 3.15%, and safe assets such as gold jumped.
US home sales declined 3.4% in May compared to April, which was the fourth consecutive decline in response to higher mortgage rates. The sales show the lowest level since June 2022, and forecasts show slower numbers as central banks in US and Canada continue their rate hikes.
Bank of Canada is now expected to raise the interest rates by 0.75% or even 1% in their upcoming meeting to combat inflation.
Canada’s inflation was recorded at 1.4% in May and 7.7% yearly, well above expectations and the hottest and fastest since 1983. Gas prices mainly contributed to the high inflation alongside high readings for clothing, furniture, and recreation.