Investors Eagerly Await Fed Chair’s Comments on Future Path of Rate Hikes
Market Watch – August 26, 2022
All three U.S. stock indexes declined on Monday as investors anxiously await a Friday speech by Fed Chair Jerome Powell in Jackson Hole, Wyoming, in which he is expected to reaffirm the central bank’s hawkish stance to combat inflation.
The Dow dropped 643 points, while the S&P 500 and Nasdaq fell 90 and 323 points, respectively. Losses were milder on Bay Street, thanks to some modest strength in the energy and materials sectors. By Monday’s close, the TSX had dropped 136 points.
U.S. stocks wobbled in quiet trading Tuesday as investors continue to speculate as to the severity of impending rate increases. The Nasdaq and S&P 500 were fairly flat, while the Dow surrendered 154 points. The TSX closed almost unchanged, adding 10 points, after a choppy session — although energy and materials stocks registered strong gains.
U.S. stocks snapped a three-day losing streak Wednesday, buoyed by rising energy shares. Oil prices climbed for a second day after Saudi Arabia and some of its OPEC+ members suggested cutting output. The TSX managed a 36-point gain, once again on strength in the energy and materials sectors.
U.S. stocks rose in light trading Thursday as investors reviewed a batch of economic data as anticipation continued to grow over Jerome Powell’s scheduled comments on Friday. By Thursday’s close, the Dow was up almost 1%, while the S&P 500 and Nasdaq added roughly 1.4% and 1.7%, respectively. In Canada the TSX was up 151 points, buoyed by the energy and health care sectors.
U.S. Indexes Lose Ground; TSX Up Slightly
For the four trading days covered in this report, the Dow lost 415 points to close at 33,292, the S&P 500 dropped 29 points to settle at 4,199, while the tech-heavy Nasdaq fell 66 points to close at 12,639. In Canada, the TSX rose 61 points to end at 20,172.