John Hancock: Weekly Market Recap Week Ended May 16

Inflation moderation

A Consumer Price Index report showed that price increases continued to moderate in April even as higher tariffs began to take effect. Prices rose 2.3% over the same month a year earlier, down slightly from March’s 2.4% annual inflation rate and marking the smallest increase since February 2021. Excluding volatile energy and food prices, core inflation was unchanged at 2.8% in April relative to March.

Trade progress

The bulk of U.S. stocks’ weekly gains came on Monday following trade negotiations between the world’s two largest economies. U.S. and Chinese negotiators agreed to sharply reduce rates for many recently introduced tariffs for 90 days while pursuing further talks that could result in a longer-term agreement.

Rebound resumes

The S&P 500 finished the week up more than 5% as the major U.S. indexes rebounded sharply from the previous week’s fractional declines. The latest results marked the fourth positive week out of the past six as stocks continued to regain their footing following the sharp declines recorded in late February to early April.

Sales flatten

U.S. retail sales posted a small monthly increase after surging the previous month in a bigger-than-expected gain that many analysts attributed to a spike in purchasing ahead of higher tariffs. Thursday’s report of a 0.1% sales rise in April followed a 1.7% surge in March.

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