John Hancock: Weekly Market Recap Week Ended January 31

2025’s solid start

The major U.S. stock indexes recorded positive results in January, regaining upward momentum after the S&P 500 and the Dow posted negative results in the final month of 2024. In January, the Dow climbed more than 4%, the S&P 500 added nearly 3%, and the NASDAQ finished almost 2% higher.

Earnings checkup

Earnings continued to modestly exceed analysts’ expectations, remaining on track to record the fastest quarterly growth rate in three years. As of Friday, fourth-quarter net income was expected to rise 13.2% compared with the year-ago quarter, based on companies that have already reported plus projections for those that haven’t yet released results. Prior to earnings season, analysts had forecast an 11.8% growth rate.

Fed holds steady

As expected, the U.S. Federal Reserve kept its benchmark interest rate unchanged as it wrapped up a two-day meeting on Wednesday. The next day, the European Central Bank approved a rate cut for its fifth policy meeting in a row.

Gold record

The price of gold rose more than 1% for the week, eclipsing the precious metal’s previous record high set three months earlier. On Friday, gold was trading above the $2,800-per-ounce level for the first time, with an afternoon price of around $2,830. Twelve months ago, gold was trading slightly above $2,000.

SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news