(Photo: 123RF)
MARKET REVIEW. The New York Stock Exchange, which had started in decline, finally continued its rebound on Friday, sparked the day before by a deceleration in US inflation.
The Toronto Stock Exchange continued to climb, seizing more than 120 points to close above the 20,000 point mark for the first time since August.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX rose 121.15 points (+0.61%) to 20,111.51 points.
In New York, the S&P500 rose 36.56 points (+0.92%) to 3,992.93 points.
the Nasdaq closed up 209.18 points (+1.88%) at 11,323.33 points.
the DOW collected 32.49 points (+0.10%) at 33,747.86 points.
the loon rose US$0.0045 (+0.5970%) to US$0.7548.
the oil ended up US$2.44 (+2.82%) at US$88.91.
L’gold rose by US$20.10 (+1.15%) to US$1,773.80.
the bitcoin ended down US$1,015.04 (-5.70%) at US$16,788.69.
The context
On Thursday, Wall Street exuberantly celebrated a decline in inflation that raises hopes that rising US prices and perhaps Federal Reserve (Fed) interest rates have finally peaked.
Stock market indices had posted their strongest daily increases since the start of the pandemic in spring 2020 on Thursday.
On Friday, the market continued to breathe “this understandable sigh of relief”, according to Tom Cahill of Ventura Wealth Management, because overall the stock market “remains well below its last peak”.
According to the S&P 500 index, the most representative of the American market, “when it fell to its lowest the market was 27% below its peak. It is still 17% below”, underlined the analyst.
Investors still expect the Fed to hike the cost of money by 50 basis points in December after four straight rate hikes of three-quarters of a percentage point (0.75%), “but after we’ll see what happens,” noted Tom Cahill.
The bond market remained closed on the Veterans Day holiday and yields on ten-year Treasury bills remained at 3.81% after falling significantly the day before in the wake of the weaker inflation reading.
But this bond status quo did not prevent the dollar from continuing to plunge against the major currencies.
Dollar decline
Around 3:40 p.m., the greenback fell heavily by 1.48% against 1.0360 for one euro, a level not seen since the beginning of July. It also lost 1.78% against the yen at 138.53 yen to the dollar, falling back below the 140 yen threshold for the first time since early September.
“The decline in the dollar was favorable for American multinationals” part of whose profits are made on export, which also supported shares on Friday, Tom Cahill again noted.
The crypto sector remained jittery as beleaguered cryptocurrency exchange, FTX, filed for bankruptcy on Friday, filing for Chapter 11 bankruptcy protection.
Its boss and founder, Sam Bankman-Fried, 30, a multi-billionaire whose fortune evaporated in a few days, resigned.
“It is still too early to say that there will be no other cards that will fall,” feared the Ventura Wealth analyst.
“After all, everything happens very quickly and the crypto-asset industry was worth some $3 trillion a while ago and is only worth $1 trillion now, so a lot of wealth has been destroyed,” added – he stresses that many investment funds have holdings in the sector.
A majority of S&P sectors ended in the green, especially energy (+3.06%), while crude prices rose in the wake of China’s announcement of a relaxation of its anti-corruption rules. -Covid for travellers, which could boost energy demand.
The communication services (+2.47%) and information technology (+1.72%) sectors also ended up, posting their best performance since April 2020 over the week.
The big names in technology continued their ascent at a slightly more moderate pace than the day before, however, as Apple (AAPL, +1.93% to US$149.70), Alphabetthe parent company of Google (GOOGL, +2.63% to US$96.41) Where Amazon (AMZN, +4.31% to US$100.79).
The technology was also driven by stocks from semiconductor manufacturers such as AMD (AMD, +5.70% to US$72.37) Where Nvidia (NVDA, +3.66% to US$163.27).
.