The stock market bulls are back

• Vanda Research: Retail traders return with an average flow of $1.36 billion a day over past week
• Tesla rallies for an 11th straight session
• Fed rate hike odds for Wednesday’s meeting stand at 30.1% slightly higher from yesterday and roughly 7 points higher than a week ago.

After a tough grind to bull-market territory, US stocks are incrementally edging higher on some corporate news and after a soft Canadian jobs report helped push global bond yields lower. With the S&P 500 entering bull market territory yesterday, many traders will closely watch to see if prices can stay bullish with this weekend close.  

It is hard to have a nice rally in the Nasdaq without some good news for one of the mega-cap tech giants.  Tesla has done it again, this time it partnered with GM, joining Ford in using their charging network.  You have the three EV giants in the US using the EV leader’s North American charging network and technologies. For now, Tesla share prices can’t stop rallying despite hitting some extreme overbought levels. It is good to be the EV king, and right now it doesn’t seem anyone is close to making a run at them. 

Canada

Following Wednesday’s surprise BOC rate hike, the Canadian employment report showed the end of a job growth streak that was in place since last fall.  Employment fell 17,000 and the unemployment rate rose to 5.2% as growth moderates.  After such a long winning streak of job growth, this weak reading could be a sign that the BOC’s tightening cycle is starting to slow the economy.  It is one soft report, but that didn’t stop it from moving Canadian yields lower.  Rate hike odds for the BOC to raise rates at the July 12^th meeting fell from 69.5% to 61.3% following the end of the eight-month streak of job gains. 

The Canadian dollar initially tumbled nearly 40 pips to the dollar, but has recovered the majority of the initial losses.  This one report of softness in the economy won’t quite yet derail the BOC’s hawkish stance. 

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.