John Hancock: Weekly Market Recap Week Ended July 31st
Fed talks
The Fed concluded a two-day meeting Wednesday, reaffirming its commitment to supporting the U.S. economy using “its full range of tools.” It decided to keep interest rates unchanged at near zero, noting in a statement that “the path of the economy will depend significantly on the course of the virus.”
GDP plunges
The U.S. economy shrank 32.9% on an annualized basis in the second quarter, the steepest drop on record since the Commerce Department began tracking GDP data in 1947. The contraction underscores the toll the coronavirus lockdowns have taken on the economy.
Program extensions
In another attempt to shore up economic recovery, the Fed announced that it’s extending several of its lending programs until the end of the year. The programs, which include corporate bond buybacks and lending to small and midsize businesses, had originally been set to end September 30.
Dollar decline
The U.S. dollar fell to its lowest point in a decade, as a resurgence in coronavirus numbers has resulted in slowing business activity and a sluggish economy contributing to the currency’s slide. The dollar lost more than 4% in July, its largest monthly decline since September 2010.
Source: https://wmr.jhinvestments.com/