Bond traders and stock buyers disagreed this week. The 10-year U.S. Treasury yield touched its highest level since 2002 on Wednesday, yet the S&P 500 set its first record since mid-August on Tuesday and finished the week about 1% higher. The Dollar Index gained about 0.3%, and gold rose about 1.3% after sinking to a two-month low.
The calendar’s two biggest events were Wednesday’s Fed minutes and Friday’s Canadian jobs report. The minutes sounded firm about more rate hikes but drew little reaction, and traders still priced a 20% to 25% chance of an October hike afterward. Friday brought the surprise: Canadian employers cut 68,300 jobs when economists expected a gain, and the Canadian dollar slid.
Bitcoin dropped about 4.5% while stocks rose, and it closed below its range on Thursday and again on Friday. Oil ended about 0.5% lower after swinging between emergency supply releases and Iran war headlines.