Aviso Weekly Market Pulse: May 8th – May 12th

May 15, 2023

Market developments

Equities:
The stock market experienced a volatile week but was down only slightly from last week as investors eagerly awaited signs that the Federal Reserve’s rate hiking cycle is approaching its end. Mixed economic data played a role, with Thursday’s U.S. jobless claims hitting their highest level since October 2021, while producer prices rose less than anticipated, indicating that policy tightening measures might finally be taking effect. The market’s sideways movement can be attributed to the high risk of a recession, yet a lack of concrete evidence in the hard data.

Fixed income:
Despite the Federal Reserve’s aggressive tightening measures, inflation remains high – leading to a delicate balancing act for policymakers to avoid a recession. As a result, swap traders are now pricing in a higher chance of an interest rate hike at the next Federal Reserve meeting. This uncertainty contributed to the climb in yields, with the two-year reaching 4.00% and the 10-year rising to 3.45% on Friday.

Commodities:
Oil futures settled lower on Friday, extending a four-week decline as concerns over the global economic outlook and uncertain demand weighed on prices. Additionally, doubts surrounding Asian economic growth, weaker refinery margins, and supply dynamics contributed to the negative sentiment. Analysts believe that resolving the debt ceiling crisis, increased activity in China, and improved inflation readings could potentially lead to a recovery in oil prices.

Read more…

Recent Posts

Aviso Weekly Market Pulse: July 8th – July 12th

Market developments Equities: The S&P 500 Index climbed to around 5,615 to end the week, showing signs of recovery despite the tech-led selloff in the Thursday session. Major banks kicked off the earnings season with mixed results. Wells Fargo saw a 7% decline due...

Aviso Weekly Market Pulse: July 1st – July 5th

Market developments Equities: Even with a short trading week, the U.S. stock market is approaching new all-time highs, with the S&P 500 on track for its 34th record this year. Traders are focusing on potential Federal Reserve rate cuts despite signs of economic...

The most tax-advantaged sources for a home down payment

If you’re in the market for a home, don’t leave money on the table when saving for your down payment. We’re sharing the different tools you have available to you as a Canadian first time home buyer to save in the most tax-advantaged way. In this article: Down payment...

Aviso Weekly Market Pulse: June 24th – June 28th

Market developments Equities: Stocks rallied towards new all-time highs this week as cooling inflation data strengthened expectations for Federal Reserve interest rate cuts in 2024. The S&P 500 Index touched above 5,500, led by technology stocks, while the Nasdaq...

NEI Monthly Market Insights: May 2024

Equities continue the rally, but economic paths diverge After a brief respite in April, global equities resumed the rally to find higher ground in May, as ongoing moderation of inflation and resilient economic trends continue to boost investor optimism. The S&P...

Aviso Weekly Market Pulse: June 17th – June 21st

Market developments Equities: The U.S. markets experienced a significant options expiration event known as "triple witching," with an estimated $5.5 trillion in contracts set to expire. This event is causing volatility in the stock market, particularly affecting...