Markets rebound on U.S. Fed remarks
Markets were already rebounding Tuesday after Monday’s sharp sell-off when U.S. Federal Gov. Brainard called for large-scale asset purchases by the U.S. central bank in the mid-afternoon. Dow the rallied into the close at 2.14% while the S&P rose 1.34% and the Nasdaq lagged just under 1% after selling off for most of the day.
Temporarily, investors set aside worries over new cases of COVID-19 that continue to grip sunbelt states like California and Florida. Meanwhile, Wall Street saw the banks release their Q2 reports and the news was concerning. JPMorgan warned of double-digit U.S. unemployment through the first half of 2021. The stock actually rose 0.57% after beating on EPS and revenue. However, Wells Fargo announced it was slashing its dividend and that earnings and revenue badly missed expectations; its shares plunged 4.57%. Citigroup narrowly missed earnings, though it beat on revenues. Nonetheless, shares slid 3.93%.
Things were sunnier in Toronto with the TSX rallying 1.72%, led by energy (up 3.8%), materials (3%) and financials (1.15%). Barrick Gold jumped 3.54% and Enbridge climbed. But the biggest news came from Immunovaccine, a small-cap biotech from Dartmouth, which announced it will start phase 1 trials of its COVID-19 vaccine. (There are three trials, which each successive trial testing the drug on exponentially more people.) IMV soared nearly 57%.