Canada’s main stock index rebounded on Monday after a sharp selloff last week, led by a jump in oil prices, while investors awaited Federal Reserve Chairman Jerome Powell’s comments later this week for clues on interest rates.
The TSX gained 19.84 points to open Monday and the week at 19,838.23, after a week in which the index parted way with 2.9% of its strength.
The Canadian dollar gained 0.08 cents to 73.92 cents U.S.
Investors will keep a close eye on the retail sales data for June on Wednesday to assess the strength of Canadian consumer spending against the backdrop of high interest rates.
Prime Minister Justin Trudeau said on Sunday that Canada is sending the military to tackle fast-spreading wildfires in British Columbia as the western province deals with flames that have led to evacuation orders for more than 35,000 people.
The TSX Venture Exchange dipped 0.40 points to 585.71, after a week of 3.5% losses.
Seven of the 12 TSX subgroups were lower, weighed most by utilities, off 0.9%, real-estate, faltering 0.6%, and gold, off 0.3%.
The five gainers were led by information technology, jumping 0.7%, energy, rumbling 0.5%, and materials, up 0.3%.
The S&P 500 edged higher Monday as Wall Street tried to recover from another weekly decline.
The Dow Jones Industrials descended 92.72 points to commence Monday trading at 34,407.94.
The much-broader index regained 14.21 points to 4,383.92.
The NASDAQ index rumbled upward 119.84 points to 13,410.62.
Major retailers are slated to report this week, including Macy’s, Nordstrom and Kohl’s. Key artificial intelligence beneficiary Nvidia and technology firm Snowflake will report after the closing bell Wednesday.
Investors are coming off a weekly decline as the market struggles through the summer doldrums. The tech-heavy NASDAQ closed the week lower about 2.6%, down for a third straight week for the first time since December. Meanwhile, the Dow closed the week lower by 2.2%, its worst streak since March. The S&P 500 dropped 2.1% and posted its third consecutive losing week, which hadn’t happened since February.
Investors digested rising bond yields and weakness out of China that put a damper on markets during a typically lackluster season.
This week, investors are anticipating an address Friday morning from Federal Reserve Chair Jerome Powell at the central bank’s annual symposium at Jackson Hole, Wyoming.
Prices for the 10-year Treasury dived, pushing yields up to 4.34% from Friday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices acquired 50 cents to $81.75 U.S. a barrel.
Gold prices collected three dollars to $1,919.50 U.S. an ounce.