Investors witnessed a week of fluctuating market activity, highlighted by anticipation of a rate cut in September. Key inflation data was awaited, with market sentiment remaining positive as major indices showed signs of recovery. The VIX index dropped significantly from the previous week, standing at 20 on Monday (August 12).
Positive data surrounding the producer price index (PPI) and consumer price index (CPI) reports led to a rise in markets on subsequent days. The S&P 500 and Toronto Stock Exchange’s S&P/TSX composite index closed higher, while the Nasdaq Composite faced setbacks due to losses in specific tech stocks.
With a September rate cut looming, all major sectors performed well on Thursday, particularly tech and resources, driving the TSX to its longest winning streak in 13 months. Positive market momentum continued on Friday, with all indices posting gains, notably the Russell 2000 leading in percentage increase.
Bitcoin saw fluctuations in value throughout the week, hovering between US$58,000 and US$60,000. Analysts projected further declines amidst signs of seller dominance. Ethereum also struggled to recover from a recent sell-off, with prices fluctuating around US$2,600 to US$2,800.
Google’s Made by Google event showcased new products, but the company faced challenges as reports of a potential divestiture emerged, leading to a muted investor response initially. Nvidia’s Blackwell rollout encountered delays, impacting their stock price, while California’s AI bill advanced in the Senate committee with amendments to ensure safety regulations for AI technologies.
