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Wall Street Braces as Tech Rout Deepens

US markets looked set for another turbulent session as futures for the S&P 500 and Nasdaq pointed lower, signaling continued pressure on the tech sector. A wave of selling has swept through major technology names this week, and Thursday’s pre‑market action suggested the downturn isn’t over yet. Alphabet remained a major drag after its sharp slide, with investors reacting to concerns about rising AI‑related spending and the uncertain payoff timeline. The pullback has added to broader anxiety across the sector, where valuations have been tested by shifting expectations around growth and profitability. Amazon now sits in the spotlight as traders await its upcoming earnings report. With sentiment already fragile, the company’s results could either steady the market or accelerate the sell‑off, depending on how its cloud and retail segments perform. Commodities also reflected the risk‑off mood. Silver prices tumbled, extending a recent decline and underscoring the cautious tone acros...
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Canada's Economy Contracts Unpredictably: Central Bank's Cautionary Outlook


 Canada’s economy unexpectedly contracted in the second quarter of 2023 at an annualized rate of 0.2% . The growth was most likely flat in July. This result will probably allow the central bank to hold rates amid a possible recession . The second-quarter reading was far lower than the Bank of Canada’s (BoC’s) forecast for a 1.5% annualized GDP growth as well as the 1.2% gain expected by analysts . The quarterly slowdown was largely due to declines in housing investment and smaller inventory accumulation as well as slower international exports and household spending. In June, Canadian wildfires adversely impacted multiple industries, including mining and quarrying and rail transportation.

The figures “leave little doubt that the Bank of Canada will keep interest rates unchanged next week,” said Stephen Brown, deputy chief North American economist for Capital Economics. The central bank hiked its benchmark overnight rate to a 22-year-high of 5.0% in July, the tenth increase since March of last year. Since then, the bank has said its future moves would depend on its reading of the data, which have been mixed.

In conclusion, Canada’s economy has contracted unexpectedly in Q2 2023, and growth was most likely flat in July. This result will probably allow the central bank to hold rates amid a possible recession. The quarterly slowdown was largely due to declines in housing investment and smaller inventory accumulation as well as slower international exports and household spending. The Bank of Canada is expected to keep interest rates unchanged next week, given the recent economic data.

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