News from us!
We're delighted to announce the return of our blog after an extended break due to the absence of our senior editor on sick leave. Her contribution is essential to providing quality content, and during her absence we decided to temporarily suspend publication. Now that we're back, you can once again look forward to regular, in-depth articles on stock market and economic trends, always with the same level of analysis and relevance.
We are delighted to announce that we have officially received the keys to our new Montreal office, and that the move took place this week. This new, modern and functional space marks an important step in our company's growth. The team is thrilled to be settling into this dynamic environment, which will enable us to better serve our customers while providing an optimal working environment for our employees. We look forward to welcoming you in the near future, as our Montreal office complements our Gatineau operations...
Markets in brief
Monday
- Dow Jones: The index fell by 0.94%, or 398.51 points, to close at 41,954.24 points.
- NASDAQ: The index fell by 1.18%, closing at 17,923.90 points.
- S&P 500: The broad index lost 0.96%, ending at 5,695.94 points.
Markets were reeling on Monday, under pressure from rising oil prices and bond yields. Investors were still digesting Friday's US employment figures, which prompted a reconsideration of the speed with which the Federal Reserve might cut interest rates. Kathrin Forrest, equity investment specialist at Capital Group, noted that signs of a robust US economy had pushed yields on 10-year Treasuries above 4% for the first time since August.
Art Hogan, Chief Market Strategist at B. Riley Wealth, added: "Take heart from a week that was saved by Friday's jobs report. Riley Wealth,added: "You're coming off a week that was saved by Friday's jobs report.Treasurys yields are rallying and energy prices are rising, making investors wonder if the situation could get worse before it gets better."
Impact of court rulings on technological actions
In mid-session, shares plummeted after a judge ordered Alphabet (Google) to open up its app store, Google Play, to greater competition. This decision had a direct impact on the major technology companies: Amazon fell by more than 3%, while Microsoft lost more than 1.5%. Nvidia, on the other hand, was the only stock to advance among the members of the "Magnificent 7" group.
Soaring oil prices
Oil futures climbed over 3% to US$77.14 a barrel. The rise was fueled by fears of a flare-up in the Middle East conflict. Energy companies were the only ones to close in the green, with the S&P 500 Energy sector gaining around 0.4%. Conversely, the utilities and consumer discretionary sectors posted losses of around 2%.
Titles in brief
- Amazon (AMZN) (-2.8%): Court ruling on Google Play causes shares to fall significantly.
- Microsoft (MSFT) (-0.7%): Impacted by competitive news in the technology sector.
- Nvidia (NVDA) (+1.2%): The only Magnificent 7 stock to advance despite the general downward trend.
- Canadian Natural Resources (+3.3%): Increase due to the announcement of the purchase of a stake in Chevron Canada.
- Generac (+8.52%): Hurricane Milton's elevation to category 5 boosts demand for generators.
Tuesday
- Dow Jones: The index rose by 0.30% to close at 42,080.37 points.
- NASDAQ: The index gained 1.45% to close at 18,182.92 points.
- S&P 500: The broad index gained 0.97% to close at 5751.13 points.
In the U.S., major technology companies rebounded from the previous day's losses, led by Nvidia (NVDA) with a 4% gain, marking its fifth consecutive day of gains. Confidence in technology stocks was a major factor in the NASDAQ's rise. Nvidia benefited from renewed investor optimism, after CEO Jensen Huang touted the "insane demand" for its new Blackwell processor at an AI summit in Washington.
The other tech giants, dubbed the "Magnificent Seven", also posted significant gains, with Amazon (AMZN), Apple (AAPL) and Alphabet (GOOG,GOOGL) closing firmly in the green.
On the other hand, oil prices retreated due to an easing of tensions in the Middle East, as well as investor disappointment at the absence of a new stimulus plan in China. Brent crude fell by 4.6% to US$77.18 a barrel, while US crude was down by 4.6% to US$73.57 a barrel. This decline weighed heavily on Canada's energy sector, dragging the S&P Capped Energy Index down by 2.33%.
Crude oil futures fell by over 4% on Tuesday, as the market anticipated a potential Israeli response to Iran, but saw no real disruption to supplies. The 7% rise in oil prices seen after the Iranian missile attacks came to a halt, as investors took profits. Disappointment at the lack of stimulus plans in China, as well as persistent concerns about Chinese demand, also contributed to the price decline.
Titles in brief
- Nvidia (NVDA) (+4%): Solid recovery in technology shares thanks to renewed interest in AI.
- Broadcom (AVGO) (+3%): Sustained growth in technology stocks.
- Meta Platforms (META) (+1%): Modest but significant gains in the technology sector.
- Tesla (TSLA) (+1%): Stable increase in line with the rest of the technology stocks.
- Microsoft (MSFT) (+1%): Shares benefited from positive momentum in the technology sector.
- Palo Alto Networks (PANW) (+5%): Strong rebound in shares, supported by renewed interest in cybersecurity stocks.
- Canadian energy sector: The S&P Capped Energy Index fell 2.33% due to lower oil prices.
Wednesday
- Dow Jones: The index rose 1.03% to close at 42,512.00 points.
- NASDAQ: The index gained 0.60% to close at 18,291.62 points.
- S&P 500: The broad index gained 0.71% to close at 5792.04 points.
The day's gains were underpinned by the Federal Reserve's minutes released on Wednesday, showing that the majority of participants support a further reduction in interest rates. This raised hopes of a "soft landing" for the US economy, especially after last week's strong employment data.
Despite geopolitical concerns over tensions in the Middle East, markets remained optimistic about the resilience of the US economy. Mike Bailey, Research Director at FBB CapitalPartners, noted that the Federal Reserve remained the key factor for investors, despite external risks.
China's stock market falls
Chinese markets fell sharply on concerns about the lack of government stimulus to bolster the economy. The Shanghai index lost 6.6%, its worst performance since February 2020, mainly due to growing fears about weak domestic demand and the prospect of a global recession. In Hong Kong, the Hang Seng index slipped 1.4% after a dramatic 9% fall the previous day, its worst decline since the financial crisis of 2008. These downward movements affected commodities, notably oil and gold.
Equities in these markets suffered from a lack of investor confidence in the apparent ineffectiveness of Chinese economic policies to support growth. As the world's largest importer of oil, China's need for raw materials has declined, leading to lower commodity prices worldwide.
Investors are also concerned about growing geopolitical tensions in the region, particularly in the Middle East, which have heightened market uncertainty. Despite this, North American markets were largely unaffected by these concerns and continued to grow, buoyed by the strength of the US economy.
Nvidia reaches new heights
Nvidia's shares have climbed 25% in one month, approaching a new record high, thanks to sustained demand for its artificial intelligence (AI)-related products. Investors are optimistic following the company's recent announcements of new products and services, as well as high expectations for its Blackwell chips, which are boosting the technology sector. This momentum has boosted investor confidence, despite previous concerns about long-term revenue growth.
Titles in brief
- Amazon (AMZN) (+ 1%): Solid growth thanks to positive expectations for its financial performance.
- Apple (AAPL) (+1%): Recovery sustained by demand for its products and services.
- Super Micro Computer (SMCI) (+ 4%): Strong performance, driven by enthusiasm for artificial intelligence.
- Alphabet (GOOGL) (-1.5%): Decline due to uncertainties linked to DOJ regulations
Thursday
- Dow Jones: The index fell 0.14% to close at 42,454.12 points.
- NASDAQ: The index fell 0.05% to 18,282.05 points.
- S&P 500: The broad index fell by 0.21% to close at 5780.05 points.
Inflation data for September showed an increase of 0.2% on a monthly basis, bringing annual inflation to 2.4%, slightly above analysts' expectations. This fuelled fears that the pace of future interest rate cuts by the Federal Reserve would slow.
U.S. markets reacted mainly to inflation data, prompting a sell-off, particularly in interest-rate-sensitive stocks such as small- and mid-caps. Luke O'Neill, portfolio manager at CooksonPeirce, noted that "inflation data is a little hotter than expected, which is prompting some investors to sell stocks that are more vulnerable to rate hikes".
The report also elicited mixed comments from Federal Reserve officials. Atlanta Fed President Raphael Bostic said he was in favor of a pause in rate cuts at the November meeting, believing it might be wise to pause before making further decisions. Minutes from the September meeting also showed divisions among Fed members over the extent of future rate cuts.
Titles in brief
- Air Canada (AC) (+ 4.44%): Easing of strike fears after the signing of a new contract for pilots.
- TD Bank (TD) (- 5.03%): Sharp decline following substantial fines for anti-money laundering violations.
- Universal Insurance (+12%): Sharp rise due to the impact of Hurricane Milton.
- Pfizer (PFE) (- 3%): Fall due to tensions with activist investors.
- Advanced Micro Devices (AMD) (-4%): Decline after the launch of a competing artificial intelligence chip from Nvidia.
Friday
- Dow Jones: The index gained 0.3%, gaining around 140 points shortly after the opening.
- NASDAQ: The index opened down 0.3%, affected by the contrasting performances of the major technology stocks.
- S&P 500: The broad index was virtually unchanged at the opening, recording a slight rise of 0.1%.
The markets continue their trend of the week, with the S&P 500 targeting a fifth consecutive week of gains, while investors prepare for the results of several major companies expected in the coming days.
Surprise fall in unemployment in September: 47,000 jobs created in Canada, led by Quebec
In September, the unemployment rate in Canada fell to 6.5%, while in Quebec it stood at 5.5%, an unexpected drop as the economy added 47,000 jobs. This decrease, albeit a modest 0.1%, marks the first drop since January and surprised economists who were expecting unemployment to rise. The information, culture, leisure, wholesale trade and professional services sectors contributed significantly to job creation, particularly in Ontario, Quebec and Manitoba. The Quebec job market advanced with 22,000 new jobs, most of them full-time. However, youth unemployment remains high at 13.5%. Despite rising wages, the pace of wage growth slowed, with an annual increase of 4.6% in September.
Titles in brief
- Tesla (TSLA) (- 8%): Sharp fall after an unconvincing robotaxi event.
- JPMorgan Chase (JPM) (+ 4%): Third-quarter results beat expectations.
- Wells Fargo (WFC) (+ 5%): Better-than-expected earnings, despite lower revenues.
This week's markets were marked by notable resilience, with the S&P 500 approaching its fifth consecutive week of gains. Strong results from major US banks, such as JPMorgan Chase and Wells Fargo, set the tone for a promising third-quarter earnings season. However, volatility persisted, particularly in the technology sector, where Tesla suffered heavy losses after a disappointing event. Economic data on inflation also played a central role, with signs of a slowdown, but not enough to allay fears. Despite these uncertainties, investors remain optimistic, awaiting further economic announcements and corporate results to guide their strategies.
