Market developments
Equities: Markets have experienced a turbulent week, with the S&P 500 showing minimal movement after a significant volatility surge and suffering a fourth consecutive week of declines. Investor sentiment remains cautious amid concerns about potential late interest rate cuts by the Federal Reserve and fears of a recession, exacerbated by a recent rate hike from the Bank of Japan that impacted global markets. Despite the turmoil, some analysts suggest that extreme fear among investors could indicate a potential rebound in the S&P 500 over the next year.
Fixed income: After initially continuing the decline from last week, U.S treasuries rallied back as an inline jobs number drove the U.S. 10-year yield to ~3.95% to end the week. Treasury yields in both Canada and Europe also climbed higher this week leading to bond prices giving back some of their gains from last week across North America and Europe.
Commodities: Oil prices are set for their first weekly gain in five weeks, trading at ~$77.00. This comes as U.S. crude inventories have fallen for six consecutive weeks, reaching their lowest levels since February, despite a decline in gasoline demand and a surprise increase in gasoline inventories.