Insurance Investments Group Claims About us

Investment update

Weekly insight into the marketplace.


June 24 to 28, 2024

Markets closed Q2 mixed

In the second quarter’s final week of trading, the AI-driven tech rally, which propelled the S&P 500 and the Nasdaq to three-month gains of 4% and 7% respectively, flashed mixed signals. On Monday, micro-chip giant Nvidia officially entered correction territory (defined by a decline of over 10%) as its stock fell a further 6.7%. Over three consecutive sessions, Nvidia shares plummeted 13% overall and erased US$430 billion in market capitalization. The S&P 500 slid 0.3% and the Nasdaq fell over 1% in the wake of Nvidia’s decline. The Dow moved 0.7% higher as investors pivoted towards the energy and financial sectors. Canada’s TSX also posted a 1.4% gain, led by a 3% gain on the energy index. The tables turned Tuesday with the S&P 500 and the Nasdaq posting gains, while the TSX and the Dow declined. Next to Nvidia, which rebounded 6% on Tuesday, the biggest AI story of the week centered around Amazon. The online retail heavyweight crossed the US$2 trillion market-cap threshold for the first time ever on Wednesday (just the fifth U.S. company to do so). All four North American benchmarks closed higher on Wednesday. Thursday was also a positive day for markets, as investors turned their attention toward Friday’s Personal Consumption Expenditures (PCE) inflation reading. The PCE index was unchanged in May after edging 0.3% higher in April, which should support expectations for one Federal Reserve interest rate cut later this year. Markets ended the week mixed with the TSX and the Nasdaq closing higher and the S&P 500 and the Dow declining.

Service prices pushed Canadian CPI higher

Statistics Canada released the latest Canadian inflation report on Tuesday, which showed a slight reacceleration in May. Annually, the inflation rate rose to 2.9%, up from 2.7% in April and above the 2.6% forecast in a Reuter’s poll of analysts.The increase was largely driven by higher prices for services, led by cellular services, travel tours, rent and air transportation, which grew at a faster pace than expected. On a monthly basis, rent was up 0.9%, which brought the yearly pace up to 8.9%. The annual cost of groceries also accelerated for the first time since June 2023, climbing 1.5% in May. It's a modest increase from April’s 1.4% pace, but overall, food prices are still 22.5% higher than they were in May 2020. Core inflation, which excludes the more volatile prices for food and gas, and is the Bank of Canada’s preferred inflation gauge, was also up in May. Auditing firm Deloitte released a report last week that now predicts the Bank of Canada of Canada will hold off on cutting rates again until September.

Canada’s economy grew in April

Real gross domestic product (GDP) grew at a 1.1% annualized rate in April, according to Statistics Canada’s latest data. On a monthly basis, GDP increased at a 0.3% pace, the fastest pace since January’s 0.5% growth, with 15 out of 20 sectors rising. The results matched advanced estimates and were in line with economists’ expectations. Wholesale and retail trade were key drivers of growth, along with manufacturing, mining and oil and gas extraction. Advanced estimates for May currently forecast 0.1% GDP growth in May. Despite the growth being slightly better than was expected for 2024 so far, April’s GDP data is unlikely to compel the Bank of Canada to cut interest rates again in July.

The stock and bond market*

Index Close Week YTD
S&P/TSX Composite 21,875.79 1.49% 4.38%
Dow Jones Industrial Average 39118.86 -0.08% 3.79%
S&P 500 Index 5460.48 -0.08 14.48%
NASDAQ Composite 17732.60 0.24% 18.13%
10-year Canadian Bond Yield 3.47% 0.13% 0.37%
10-year U.S. Treasury Yield 4.36% 0.11% 0.48%
WTI Crude Oil (US$/barrel) $81.54 1.00% 13.80%
Canadian Dollar US$0.7301 0.10% -3.19%
Bank of Canada Prime Rate 6.95%

*Weekly performance ending June 28, 2024. Source: Bloomberg.

Key take-away
We’re here to help. Partnering with us is a great way to keep your investment plan moving forward. Letting our experienced portfolio managers guide your investments through the market uncertainty will help you stay on track toward your financial goals. If you decide it’s time to review your plan contact your financial representative.
What’s ahead

Canadian and U.S. employment data (July 5):  As central bank officials continue to assess the health of their respective economies ahead of potential interest rate cuts, employment data and labour market insights will continue to play an important role.

Circle these dates 

July 24: Bank of Canada interest-rate announcement

July 31: U.S. Federal Reserve interest-rate announcement

The commentary in this report is based on current market conditions and market media sources available to the public and may change without prior warning at any time. The forecasts provided herein are not guarantees of future performance and include risks, uncertainty and assumptions. While Co-operators Life Insurance Company (“Co-operators”) believes these assumptions are reasonable, there is no guarantee they will be confirmed. This report is not a guarantee of future investment performance, nor should undue reliance be placed on this report. This report is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this report constitutes investment, legal, tax or other advice. The content in this report should not be relied upon in making an investment or other decision, and individuals should obtain relevant and specific professional advice and read the terms and conditions contained in the relevant offering documents carefully before any investment decision is made. Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. Co-operators is committed to protecting the privacy, confidentiality, accuracy and security of the personal information it collects, uses, retains and discloses in the course of conducting business. Please visit for more information. Co-operators® is a registered trademark of Co-operators Group Limited and is used with permission. Investing in your future. Together.TM is a trademark of Co-operators Group Limited. If you are a client who has received this, and you have questions or want to discuss your investments, please contact your Financial Advisor.

The Dow Jones Industrial Average and S&P 500 ("Indices") are products of S&P Dow Jones Indices LLC, its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited. Copyright © 2024 S&P Dow Jones Indices LLC, its affiliates and/or their licensors. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

The S&P/TSX Composite is a product of TSX Inc., its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited. Copyright © 2024 TSX Inc. All Rights reserved. Neither TSX Inc., their affiliates, nor their third party licensors make any representation or warranty, express or implied, as to the accuracy of market representation of any index, or the context from which they are drawn, and shall not be liable for any errors, omissions or interruptions of any index or the data included therein.