Market Pulse
Market developments
Equities: Globally, equities managed to rally despite recessionary concerns and amid mixed narratives on where inflation might be headed. Growth-oriented sectors such as communication services, consumer discretionary, and information technology were the largest contributors to the S&P 500 Index’s positive returns. The tech-heavy NASDAQ benefitted significantly from the strong performance of the information technology sector.
Fixed income: Bond yields in Canada and the U.S. increased amid strong employment data releases. The low unemployment rate supported the case for 75-basis-point rate hikes from the Bank of Canada and U.S. Federal Reserve later this month.
Commodities: The oil selloff continues as recession concerns trump supply bottlenecks. The potential for a recession is also being reflected in sustained weakness in copper.