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Monday’s CPI Could Decide Your Next Mortgage Payment

  Canada lost 68,000 jobs in September. Inflation is sitting at 3%. The Bank of Canada has to decide on October 28 which of those facts matters more, and on Monday morning one more number lands to help it choose. If you carry a variable-rate mortgage, a HELOC or a renewal this winter, that number has a price tag. Two reports pulling in opposite directions The jobs data came first. Statistics Canada reported on October 9 that employment fell by 68,000 in September, pushing the unemployment rate to 6.5% from 6.4%. It followed a drop of about 42,000 in August, which means more than half of the 181,000 jobs gained between April and July have now been wiped out. Ontario shed 20,000 positions on its own. Markets reacted within hours: the odds of a quarter-point Bank of Canada hike on October 28 dropped to roughly 25% from about 40%, according to LSEG data reported by Reuters. Inflation is telling the opposite story. The consumer price index rose 3.0% year over year in August, matching Ju...
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Tech Stocks Rally as Powell Reinforces Fed Caution



US stocks surged today, with technology companies leading the way. Investors closely followed Federal Reserve Chair Jerome Powell’s testimony, where he reiterated that interest rate cuts are still likely this year. Here are the key highlights:

  1. Tech Rebound: The tech-heavy Nasdaq Composite (NASDAQ: IXIC) bounced back by about 1% after a sharp slide in stocks on Tuesday. Investors welcomed this recovery.

  2. Powell’s Stance: Powell’s prepared testimony indicated that rate cuts are likely to be warranted “at some point” in 2024. Investors eagerly await further clarity during his two-day testimony before Congress.

  3. Individual Stocks: CrowdStrike (NASDAQ: CRWD) shares continued their post-earnings rally, surging over 18%. The cybersecurity company’s positive outlook signaled robust demand in the sector. Other cybersecurity stocks, including Zscaler (NASDAQ: ZS), also gained.

  4. Goldman Sachs’ Outlook: Economists at Goldman Sachs predict that 2024 will be the year of rate cuts globally. Central banks in developed markets are expected to cut rates for at least three consecutive meetings, starting in June.

In summary, Powell’s cautious stance and positive economic data have contributed to today’s market rally. Investors remain attentive to any deviations from the Fed’s message regarding interest rates. As we navigate these uncertain times, tech stocks continue to play a pivotal role in shaping market sentiment.


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