Market Watch – February 8, 2019
Big Picture
U.S. Market Momentum Fades as Global Growth Worries Re-emerge
North American markets began the week on a positive note, buoyed by a resurgent tech sector and better-than-expected earnings reports. By Tuesday’s close, the Dow had climbed nearly 350 points, while the Nasdaq added almost 140 points. Canada’s main stock index rose 196 points over the two-day period as gains in health care and financials, along with upbeat earnings, helped set a positive initial tone for the week.
By Wednesday’s open, the focus had shifted to the Nasdaq, which looked to be on the verge of exiting a bear market. The tech-heavy index had rebounded nearly 20% from its Christmas Eve low, underscoring the strength of the tech sector, which has lifted markets higher. Recent gains have been powered by rising optimism about U.S.-China trade negotiations and the Fed’s recent assurances that near-term rate hikes were less likely, as inflation concerns had receded.