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In New York, the Dow Jones industrial average was up 423.78 points at 32,827.00. The S&P 500 index was up 36.25 points at 3,806.80, while the Nasdaq composite was up 89.26 points at 10,564.52.

Markets continued the rally from Friday, but gave back some of their wins, said John Zechner, chairman and lead equity manager at J Zechner Associates.

For example, oil and copper prices were down Monday, while on the TSX utilities and base metals were also down.

On Friday, stronger-than-expected jobs data on both sides of the border had markets up, and the Canadian dollar gained more than a cent.

“I think that the rally you saw on Friday was somewhat unusual,� said Zechner.

The Canadian dollar traded for 74.11 cents US, compared with 73.98 cents US on Friday.

The December crude contract was down 82 cents at US$91.79 per barrel and the December natural gas contract was up 54 cents at US$6.94 per mmBTU.

The December gold contract was up US$3.90 at US$1,680.50 an ounce and the December copper contract was down eight cents at US$3.60 a pound.

The second half of the fourth quarter is a seasonally strong period for the markets, said Zechner. Even the tech sector, which has been weighing on U.S. markets in particular in recent weeks, had a decent day Monday, he said.

But despite the market optimism, Zechner said he remains cautious.

“I'm a little hesitant to jump on the bandwagon,� he said.

With inflation data coming soon in Canada and the U.S., Zechner said he’s concerned it won’t trend down as quickly as investors — and central banks — hope, even though it’s likely peaked.

“I think the surprise in all of this ... is that the economic numbers have not really rolled over yet, which is surprising given how aggressive rates have increased throughout the year.�

However, it’s possible that instead of a steady monthly decline, economic data will catch up with a crash, said Zechner.

He noted that some of the more leading numbers like housing sales and prices have begun their descent.

“There’s going to be an impact, that just hasn’t maybe happened as quickly as we might have expected.�

The U.S. will report inflation data this Thursday, while Canada's next release is scheduled for Nov. 16.

This report by °µÍø½ûÇø was first published Nov. 7, 2022.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)