John Hancock: Weekly Market Recap Week Ended June 24th

Roaring back

After declining for three weeks in a row, the major U.S. stock indexes regained their footing, with the NASDAQ surging more than 7%, the S&P 500 adding more than 6%, and the Dow rising more than 5%. The results marked a near mirror-image reversal from the previous week, when the S&P fell into a bear market as it tumbled more than 20% from a recent high in early January.

Yield pullback

Prices for U.S. government bonds rose for the second week in a row, sending the yield of the 10-year U.S. Treasury bond down to 3.13% on Friday. That’s down from a recent high on June 14 of 3.48%—a level not seen since April 2011.

Sagging indicators

A monthly survey of U.S. corporate purchasing managers showed that growth in economic activity across manufacturing and services fell to the lowest level in five months. In the eurozone, a similar survey showed that growth fell to the lowest in 16 months as rising interest rates weighed on the economy.

Inflation report ahead

A report scheduled to be released on Thursday will be closely watched for any signs that U.S. inflation may have peaked. The government will update its Personal Consumption Expenditures Price Index, the Fed’s preferred gauge for tracking inflation. The latest report showed that PCE inflation moderated at an annual rate of 6.3%, although it remained close to the highest level in four decades.

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