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Oil Jumps Past $90 as U.S. Strikes Iran Again: Markets Open the Week on Edge

  Markets are starting the final trading session of August the way they've started so many this summer — with the Strait of Hormuz back in the headlines. U.S. forces struck Iranian rocket launchers on Sunday, ending weeks of relative calm, and oil, bond yields and equity futures are all reacting this morning. Meanwhile, Friday's close showed the TSX slipping to a two-week low as Fed Chair Kevin Warsh's hawkish Jackson Hole remarks rattled gold and rate-cut hopes alike. What It Means for You: Higher oil prices flow straight to the pump — watch this week's gas price moves as a preview of what happens when the federal gas tax holiday ends Sept. 7. A softer loonie also means costlier U.S. travel and cross-border shopping just as back-to-school and Labour Day trips wrap up. Canada: TSX Closes Out the Week at a Two-Week Low The S&P/TSX Composite fell 280.33 points, or 0.80%, to close Friday at 36,553.92 — its lowest closing level since Aug. 20. The index finished the wee...
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US stocks hope for economic stability after record highs

 


The US stock market has been on a roll this year, with the S&P 500 index up by 17% and hovering around 6% below its record high from January 2022. The market’s performance in the coming weeks will depend on how confident investors are that the US economy will experience a soft landing..

A soft landing is a scenario where the economy slows down moderately without going into a recession . Morgan Stanley Research believes that the US economy can achieve a soft landing, given the current housing cycle, income and spending trends, a stable labor market, and receding inflation. However, banking-sector turmoil and a resulting credit squeeze still pose some recession risk.

The recent stock market rally has Wall Street re-examining the potential for the US economy to pull off a soft landing scenario. Goldman Sachs expects the economy to react positively to the Fed’s monetary policy in 2024.

It’s worth noting that the stock market is not always a reliable indicator of the economy’s health. Therefore, investors should be cautious and not celebrate too soon.



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