Skip to content
Scotia Wealth Management

Markets Struggle for Momentum as Coronavirus Cases Rise

Market Watch – June 19, 2020

June 19, 2020

It’s been a volatile week for N.A. equity markets as investors continue to weigh positive economic data against a disconcerting rise in coronavirus cases in the U.S. and around the globe. Although stocks initially opened sharply lower Monday on reports of an uptick in U.S. infections, markets recovered gradually throughout the day—surging even higher after Fed Chair Jerome Powell announced that the central bank would broaden its corporate credit purchases to include individual company bonds.

Positive sentiment continued Tuesday over new data showing that U.S. consumer spending rebounded nearly 18% in May, the biggest monthly increase in retail spending going back to 1992. For many it was a sign that the recovery had turned a significant corner. By Tuesday’s close, the Dow had surged more than 500 points, while the TSX added 156.

However, N.A. stocks drifted lower Wednesday in a volatile session as investors weighed a spike in infections against a surge in U.S. residential construction. By day’s end, the Dow was off nearly 175 points, while the TSX tumbled 87, weighed down by weakness in the energy sector. The day’s lone bright spot was the Nasdaq, which extended its winning streak to a fourth day as tech stocks continued to climb.

Thursday’s session began with mixed economic news out of the U.S. The number of Americans filing for unemployment benefits was down slightly last week, but applications remained historically high at 1.5 million, outpacing economists’ expectations. Also weighing on markets Thursday was news that Chinese officials had cancelled hundreds of flights in and out of Beijing on Wednesday, as they struggled to contain a fresh wave of coronavirus cases in the nation’s capital. By Thursday’s close, markets were essentially flat, with the Dow down 40 points and the TSX up 51.

Read more…

Legal

This publication has been prepared by Scotia Capital Inc. and is intended as a general source of information only and should not be considered as personal and/or specific financial, tax, pension, legal or investment advice. We are not tax or legal advisors and we recommend that individuals consult with their qualified advisors before taking any action based upon the information contained in this publication. Opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither Scotia Capital Inc. nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of Scotia Capital Inc.