Globally, equities managed to rally despite recessionary concerns and amid mixed narratives on where inflation might be headed. Growth-oriented sectors such as communication services, consumer discretionary, and information technology were the largest contributors to the S&P 500 Index’s positive returns. The tech-heavy NASDAQ benefitted significantly from the strong performance of the information technology sector.
Bond yields in Canada and the U.S. increased amid strong employment data releases. The low unemployment rate supported the case for 75-basis-point rate hikes from the Bank of Canada and U.S. Federal Reserve later this month.
The oil selloff continues as recession concerns trump supply bottlenecks. The potential for a recession is also being reflected in sustained weakness in copper.