John Hancock: Weekly Market Recap Week Ended May 1
Bullish April
U.S. stocks rebounded in a big way from their negative first-quarter results, with two indexes posting double-digit returns in April. The NASDAQ rose 15.3% to record its biggest monthly gain since April 2020, while the S&P 500’s 10.4% rise was that index’s biggest since November 2020. The Dow advanced 7.1% for its strongest monthly result since November 2024.
Earnings progress
Earnings season forecast rose sharply after a handful of mega-cap tech companies reported better-than-expected results. As of Friday, analysts projected that earnings for S&P 500 companies rose 27.1% in the first quarter, up from a 15.0% forecast at the end of the previous week, according to FactSet. The latest forecast was based on the 63% of S&P 500 companies that had reported results as of Friday, plus projections for those that haven’t yet released their numbers.
Fed transition
Although the U.S. Federal Reserve kept its benchmark rate unchanged, its updated policy statement drew dissents from 4 of 12 members, reflecting wide-ranging views on the path forward. It was likely the final meeting led by Jerome Powell, who said he plans to remain a Fed governor after his term as chair ends this month. Kevin Warsh’s nomination to replace Powell cleared a Senate panel, setting up a confirmation vote by the full Senate.
GDP comeback
U.S. GDP grew at a 2.0% annual rate in this year’s first quarter as the economy gained momentum after posting a 0.5% result in the preceding quarter. Despite the acceleration, the government’s initial first-quarter estimate came in slightly lower than most economists had forecast, and it marked a slowdown from the 4.4% rate recorded in last year’s third quarter.
Read More: https://www.jhinvestments.com/weekly-market-recap#market-moving-news

