Market View

The unemployment rate rose to 4.3% - the highest level since October 2024, as the US economy added 114,000 nonfarm payroll jobs in July, fewer than 175,000 expected, raising concerns that the Fed may have waited too long to cut interest rates. On the other hand, the US Federal Reserve decided to hold interest rates unchanged at the July meeting, but signalling rate cuts in September could be on the table. The Canadian dollar was 72.26 cents USD. The U.S. S&P500 ended the week up 0.8%, while the TSX was up 0.3%.

Most sectors ended the week in red. Technology gave up 7.3%, while energy slid 5.3%. Financials and industrials edged lower by 3.3% and 2.9%, respectively, while real estate slipped 2.5%, and materials gave up 2%. Consumer discretionary and consumer staples ended the week down 1.6%, each. The most heavily traded shares by volume were Royal Bank of Canada, Western Forest Products, and Cenovus Energy.

5 from 5i

Here are five reads we found interesting last week:

• All these charts on the US job market are telling the Fed to cut rates, written by Luke Kawa of Sherwood News
• Willingness, Need, and Ability: How To Determine Your Appropriate Risk, published by Jesse Cramer of Best Interest
• The Sustainable Path is the Only Path, written by Nick Maggiulli of Of Dollars and Data
• Three Things – Commodities, Bitcoin & Stocks, published by Cullen Roche of Discipline Funds
• Why commodities are sinking even as small caps surge, by Luke Kawa of Sherwood News

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.