SIACharts Logo

Commentary >

 NASDAQ Composite Index (NASD.I) & iShares Real Estate ETF (IYR)

Equity markets, which had levelled off early in the week as investors awaited the results of yesterday’s Fed meeting, took off again yesterday afternoon on the Fed decision and forecasts. While the Fed holding rates was as expected, clearer comments suggesting that the US central bank is either done or nearly done raising rates unless something happens, and a forecast from FOMC members calling for potentially 3 rate cuts next year, up from 2 in September and back to the June forecast, was taken as shift to neutral-dovish from neutral-hawkish by traders. Equity market breadth continues to improve with the small-cap Russell 2000 soaring over 3.0% Wednesday, while the large cap Dow Industrials, S&P 500 and NASDAQ all gained around a more moderate 1.0%. Most markets around the world have climbed 2-4% over the past week so geographic breadth has been significant.

Bullish action has been widely spread out across sectors as well. All eleven major industry groups rallied between 2.0% and 4.1% yesterday and all eleven groups are up over the last week too. Tomorrow is Quadruple Witching Day when many futures and options contracts expire which means we may see some volatility as traders adjust positions. With the holidays approaching, we may see corporate news start to slow down next week and there are only a few notable companies reporting earnings such as Nike and FedEx. Fed Chair Powell hinted that a soft landing scenario continues to play out. Heading toward the holidays, there are still a number of economic reports on the way which may give investors more clarity on the state of the economy including US retail sales today, Flash PMI reports from around the world tomorrow, and a number of US housing market indicators next week. For Canada, inflation reports next week plus monthly GDP are the main events before things go quiet for the holidays. In this edition of Equity Leaders Weekly, we look at a big breakout by the NASDAQ and a resurgence in interest in the real estate sector.

NASDAQ Composite Index (NASD.I)

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.