Canada’s main stock index fell more than 1% on Wednesday, with losses among industrials, utilities and base metals companies, while U.S. stocks also fell.
The S&P/TSX composite closed up 242.10 points at 19,450.70. The Dow Jones Industrial Average fell 332.57 points to 33,665.08 in New York. The S&P 500 fell 58.60 points to 4,314.60, and the Nasdaq fell 219.44 points to 13,314.30. Michael Curry, senior investment adviser at TD Wealth, said the market still faces uncertainty about rising interest rates and the resulting high bond yields.
US Treasury yields continued to weigh on markets on Wednesday. For months, interest rates and stocks have been in a push-pull relationship that “has become almost constant,” Curry said: “When rates go down, stocks go up, rates go up, and stocks go down.”
He said the moves were arbitrary, affected most industries and upset investors.
Curry indicated that Federal Reserve Chairman Powell is scheduled to speak on Thursday and is likely to reiterate the Fed’s view that interest rates should be kept higher for longer and that another rate hike is not on the cards. impossible. “There is certainly no discussion of rate cuts in the United States,” Curry said. “At least we’ll stay where we are and maybe go a little higher.”
That “sustained bullish” sentiment limited the stock market, he said.