Live news: RBC, BMO commit to racial equity audits after shareholder pressure
Stocks kicked off the week with losses after posting big gains this month, with traders awaiting key inflation data, remarks from United States Federal Reserve speakers and results from some giant retailers.
The S&P 500 dropped after posting nine positive days out of 10 — a level of consistency seen less than one per cent of the time this century and last observed in the fall of 2021. Treasuries fell across the curve, with 10-year yields approaching 4.7 per cent. The U.S. dollar rose against most of its major developed-market peers.
Equities rallied in November amid bets interest rates are peaking and the Fed will be able to ease policy next year. In a survey from the American Association of Individual Investors, the proportion of respondents who say they’re optimistic on the stock market jumped by three-quarters, while the ranks of pessimists plunged. From one week to the next, the bull-bear spread rose by 41 points, an advance last seen in early 2009.
“It would actually be healthy if the stock market took a bit of a breather near-term,” said Matt Maley, chief market strategist at Miller Tabak + Co. “If it continues to rally in a straight line, especially now that many of the big cap tech names are getting very expensive once again, it could take away from some of the rally’s potential in December. No market moves in a straight line.”
U.S. traders will also keep a close eye on Washington negotiations to avert a government shutdown at the end of this week, an event that would threaten the loss of the nation’s last top credit rating after Moody’s Investors Service signalled Friday it was inclined to issue a downgrade amid wider budget deficits and political polarization.
On Wall Street, the S&P 500 was down 0.39 per cent
Read more on financialpost.com
