Market week: Stock indexes gain on the week

S&P/TSX touches record high, approaches 20,000 mark

The major North American stock indexes made gains on the week, ending at or near record highs. Investors digested new inflation data as the U.S. Personal Consumption Expenditure Inflation Index came in at 3.6%, its highest level since 2008. The core price index rose 3.1%, its highest since 1992. Meanwhile, the final reading of the University of Michigan’s Consumer Sentiment Index was posted at 82.9, down from 88.3 in April, suggesting that climbing prices are becoming a factor in consumer spending decisions. Investors also weighed U.S. President Joe Biden’s US$6 trillion budget tabled on Friday, which projected a deficit of $1.8 trillion next year.

The S&P 500 Composite Index closed at a near record high on Friday, gaining 1.2% on the week, while the Nasdaq Composite Index advanced 2.1%. Toronto’s S&P/TSX Composite Index rose 1.7% on the week, buoyed by a 4.3% weekly surge in crude oil prices and a 1.4% rise in the price of gold. The index closed the week at a record high as it approached the 20,000 level.

Fund news

* Invesco debuts two new tech ETFs. Invesco Canada on May 27 launched two new technology-themed exchange-traded funds (ETFs): Invesco NASDAQ Next Gen 100 Index ETF (TSX: QQJR) and Invesco NASDAQ 100 Equal Weight Index ETF (TSX: QQEQ). The funds are designed to offer investors several distinctive entry points to own the disruptive companies listed on The Nasdaq Stock Market. Invesco also announced the launch of Canadian dollar units of Invesco NASDAQ 100 Index ETF (TSX: QQC), formerly the Invesco QQQ Index ETF.

* BMO launches six new funds. BMO Investments Inc. announced on May 26 the qualification of six new funds and series:

• BMO Clean Energy ETF Fund (Series A, F and I), provides equity exposure to companies involved in global clean energy related businesses.
• BMO Nasdaq 100 Equity ETF Fund (Series A, F and I), holds non-financial companies listed on the U.S. NASDAQ-100 Index.
• BMO SDG Engagement Global Equity Fund (Series A, F, I and Advisor Series), invests in global equities using a responsible investment approach to support sustainable development goals.
• BMO Sustainable Bond Fund (Series A, F, I and Advisor Series) invests in Canadian dollar-denominated debt instruments using a responsible investing approach.
• BMO Sustainable Opportunities China Equity Fund (Series A, F, I and Advisor Series) holds Chinese equities using a responsible investing approach.
• BMO U.S. All Cap Equity Fund (Series A, F, I, ETF Series and Advisor Series) invests shares of U.S. companies of any size of market capitalization.

* Scotia renames private pools. Scotia Global Asset Management on May 27 announced the that the names of 38 Scotia Private Pools will change to Scotia Wealth Pools. The investment objectives and other aspects of all the affected Pools and Funds will remain the same. Details at the Scotiabank newsroom.

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