TORONTO – An up-and-down trading session ended in positive territory for Canada’s main stock index on Friday while U.S. stock markets were mixed after another day of tech sector instability.
The mayhem is what investors can expect for the next month or so as markets try to figure out if big technology players like Apple, Amazon and Zoom are worth their elevated values in a world with an ongoing pandemic and a looming U.S. presidential election, said Allan Small, senior investment adviser at HollisWealth.
“Hold on to your hats. I think it’s going to be a bumpy ride,” he said when asked for advice for investors.
“I think the word going forward over the next week or two is, ‘Volatile.'”
A late rally allowed the S&P/TSX composite index to close in Toronto up 37.14 points at 16,222.46, although it was off by almost 70 points at midday.
Meanwhile, Wall Street closed out its worst week since June with another day of churning trading Friday.
In New York, the Dow Jones industrial average was up 131.06 points at 27,665.64.
The S&P 500 index was up 1.78 points at 3,340.97, while the Nasdaq composite, which includes many of the superstar tech stocks that have been the focus of the market’s recent selling, was down 66.05 points at 10,853.54.
The Canadian dollar traded for 75.84 cents US compared with 75.98 cents US on Thursday.
Investors are looking for signs that a major rotation into value stocks from technology is taking place, but Small said there’s no evidence of that as yet.
It seems more likely that investors are taking profits after a summer of tech stock gains and leaving the money in cash until there’s more directional clarity, he said.
The shift is somewhat seasonal, he said, agreeing that September is traditionally a