John Hancock: Weekly Market Recap Week Ended October 29th

October comeback

The major U.S. stock indexes climbed around 6% to 7% in October, rebounding from declines in September that had snapped a seven-month string of positive results. For the S&P 500, it was the largest monthly increase since November 2020. 

GDP disappointment

The U.S. economy expanded at an annual rate of 2.0% in the third quarter, below most economists’ expectations and marking the slowest quarterly growth since the pandemic triggered a sharp decline in early 2020. Supply chain disruptions and slower gains in consumer spending weighed on GDP growth over the past three months. 

Upbeat earnings

Strong results continued to provide a market catalyst midway through earnings season. As of Friday, third-quarter profits at companies in the S&P 500 were expected to increase nearly 37%, based on companies that have reported so far and forecasts for firms that haven’t yet released earnings, according to FactSet. That’s up from the 33% gain that had been forecast at the end of the previous week and the 27% rise that had been projected at the end of September. 

Fed ahead

At its two-day meeting that concludes on Wednesday, the U.S. Federal Reserve could release details of its plan to begin trimming its bond-purchasing stimulus program. The meeting will come less than two weeks after Fed Chair Jerome Powell publicly said that the central bank remained on track to begin tapering the $120 billion in bond purchases that it’s been making each month.

Source: https://wmr.jhinvestments.com/