- Technology companies led stock gains, with bond traders reducing aggressive bets on Fed rate hikes amid speculation that inflation is nearing a peak. Investors also considered the start of the earnings season in light of geopolitical risks.
- The S&P 500 ended a three-day decline, while the tech-heavy Nasdaq 100 outperformed. Another drop in treasury two-year yields, which are more sensitive to upcoming monetary-policy decisions, brought this week's drop to around 15 basis points.
- The loonie strengthened after the Bank of Canada raised interest rates by half a percentage point, the largest increase in more than two decades.
- Oil was trading for more than $100 per barrel.
- RBC Capital Market's Calvasina states that the has the potential to be a mess, citing a miriad of headwinds, but believs that it will not be as bad as feared, given the likelihood that buy-side expectations are much lower than official sell-side forecasts.
- Traders also kept an eye on the latest geopolitical developments, such as Biden's announcement that the United States will expand the size and scope of weapons provided to Ukraine in a new $800 million military aid package. This includes heavy artillery systems and armoured personnel carriers, indicating a more serious commitment than the country has already made, as well as artillery rounds and additional helicopters.
