The Fund Library :: Columns :: Weekly market wrap April 6, 2018: Rising trade tensions sour market sentiment

By Mike Keerma

Stock market indices closed a volatile week of trading on Friday with weekly losses, as trade tensions increased, and a weaker-than-expected U.S. job creation report soured investor sentiment. Toronto’s benchmark S&P/TSX Composite Index fell 1.0% on the week as investors sold off energy and financial issues in reaction to renewed trade tensions. Against a backdrop of rising stock market volatility, with the CBOE Volatility Index (VIX) closing the week at 21.49, the U.S. blue-chip S&P 500 Composite Index dropped 1.4% week over week. With headwinds from the tech sector, including continuing concerns over data security at Facebook Inc. (NASDAQ: FB), the Nasdaq Composite Index fell 2.1% on unrelenting selling pressure. Short seller Citron Research issued a bearish view of Nvidia Corp. (NASDAQ: NVDA) and Apple Inc. (NASDAQ: AAPL) extended its retreat with a loss for the week, marking an 8% drop from its 52-week high of early March. Gold edged up 0.6% on the week bolstered by its safe haven status, while crude oil dropped 4.6%.

Investor anxieties increased again during the week, as U.S. President Donald Trump ratcheted up trade tensions by proposing $100 billion in new tariffs against China. The U.S. job creation report for March came in lower than expected at 103,000 positions. And Federal Reserve Board Chairman Jerome Powell added to the uncertainty by downplaying widely anticipated Fed hawkishness on monetary policy, plumping instead for “gradual increases in the Fed funds rate,” adding that the “patient approach has paid dividends and contributed to the strong economy” seen today.

Check Fund Library’s Market Activity page regularly for active updates on key market indexes and commodities.

@FundLibrary – Follow Fund Library on Twitter for daily information and updates.

Disclaimer

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.