The stock market had a mixed week, with U.S. equities initially declining due to concerns about prolonged interest rate hikes by the Federal Reserve. However, stocks rebounded later in the week as economic data indicated a cooling labor market, boosting optimism that the Fed would pause its tightening campaign. The S&P 500 ended the week almost unchanged, while entering a technical bull market.
Canadian government bond yields went up because the Bank of Canada unexpectedly raised interest rates. However, U.S. 10-year yields didn’t change much. Investors were still interested in buying options that protect against interest rate increases, and there was also activity in Treasury options. Overall, it was a mixed week for bonds and interest rates.
Oil prices experienced a mixed week of fluctuation. Initially, prices rose as a result of a weak U.S. dollar and high refinery runs in the U.S., indicating strong summer demand. However, prices dropped due to reports suggesting progress in U.S.-Iran talks, potentially leading to increased Iranian crude exports. Despite Saudi Arabia’s pledge to cut production, concerns about demand persisted, resulting in a weekly decline of 2% for oil prices.