A rally in stocks fizzled out after two Federal Reserve officials signaled that interest rates could top 5 per cent, throwing some cold water on traders who saw a peak below that mark.
The S&P 500 failed to stay above the key 3,900 level, erasing an advance that reached almost 1.5 per cent earlier in the session. The Dow Jones Industrial Average underperformed, while the Nasdaq 100 remained higher thanks to gains in big tech, with Tesla Inc. surging about 6 per cent. The dollar pared losses.
Investors also awaited Thursday’s U.S. CPI report that will come out almost a week after the latest jobs data showed that wage growth has decelerated. The figures will be among the last such readings policy makers will see before their Jan. 31-Feb. 1 gathering. Morgan Stanley’s Michael Wilson said that while investors are generally pessimistic about the outlook for economic growth, corporate profit estimates are indeed still too high. That suggests the S&P 500 could fall much lower than the 3,500 to 3,600 points the market is currently estimating in the event of a mild recession, he said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. Federal Reserve has ‘difficult’ call to avoid overdoing rates shock, former Obama adviser saysThe Fed has raised its target policy rate by more than 4 percentage points in the last year, and ‘we are just now entering the window where the effects might start to be noticed,’ Christina Romer said
Read more »
U.S. stocks extend risk rally on China; dollar weakens - BNN BloombergStocks extended global gains in risk assets, driven by China's reopening trade and expectations of slower rate hikes. The dollar weakened and oil rallied.
Read more »
Canaccord managers try to take firm private after stock drop - BNN BloombergCanaccord Genuity management group is seeking to take the firm private in a $1.13 billion deal, taking advantage of a plunge in the share price after last year's turmoil in capital markets.
Read more »
Canaccord managers try to take firm private after stock drop - BNN BloombergCanaccord Genuity Group Inc.’s management group is seeking to take the firm private in a $1.13 billion ($843 million) deal, taking advantage of a plunge in the share price after last year’s turmoil in capital markets.
Read more »
The Week Ahead: Earnings from Aritzia, RBC’s Canadian Bank CEO Conference - BNN BloombergA look at what investors will be watching in the upcoming week.
Read more »
Homebuyers hope 'patience pays off' as prices drop, recession predictions loom - BNN BloombergHome prices have steadily declined since last spring, bidding wars are less frequent and economists foresee an end to the Bank of Canada's quick succession of interest rate hikes that have added hundreds, if not thousands, of dollars to monthly mortgage payments.
Read more »