Market week: Stocks flatten out
Falling consumer sentiment weighs on markets
While the S&P 500 Composite Index and the S&P/TSX Composite Index ticked up on the week, the Nasdaq Composite Index broke even. The University of Chicago consumer sentiment index slid to 70.2 in August from 81.2 in July, a relatively steep month-over-month drop indicating a sudden loss of consumer confidence, as the infection rate of the Covid-19 Delta variant rose in most U.S. states. In addition, the U.S. consumer price index increased to 5.4% in July, with prices of goods and services climbing across the board.
The S&P 500 gained 0.7% on the week, as value stocks once again led the market while growth stocks slipped back. The Nasdaq ended the week just a hair below even, as the more growth-oriented issues, such as technology shares, weakened.
Toronto’s benchmark S&P/TSX Composite Index advanced a marginal 0.2% on the week, as strength in cyclical financial sector helped buoy the market in the face of weakness in the energy sector, as crude oil’s momentum eased, finishing just slightly above breakeven on the week. Gold, meanwhile, edged up 1.0% on the week, but is still down 6.0% year to date
* Scotia merges, terminates funds. Scotia Global Asset Management announced on Aug. 12 proposed changes to streamline its lineup. Scotia CanAm Index Fund will be merged into Scotia U.S. Equity Index Fund. on or about Nov. 8, 2021. And both the Scotia T-Bill Fund (Series A) and Scotia Premium T-Bill Fund (Series A) will be terminated effective on or about Dec. 3, 2021:
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