John Hancock: Weekly Market Recap Week Ended April 18

Dollar’s decline

Amid elevated trade tensions, the U.S. dollar’s status as the world’s chief reserve currency came under renewed pressure. Its value relative to a basket of other major currencies fell for the sixth week out of the past seven, and the dollar slipped on Thursday to a three-year low, more than 8% below its year-end 2024 level.

Retail therapy

Despite recent surveys indicating a decline in consumer sentiment, U.S. retailers posted a bigger-than-expected increase in sales during March, with a 1.4% gain relative to the prior month. While automobile-related sales provided much of the overall gain, the numbers excluding autos were also stronger than expected.

Gold’s long climb

The price of gold rose for the sixth week out of the past seven, eclipsing the $3,300-per-ounce level for the first time just a week after topping $3,200 an ounce. On Friday, gold was trading around $3,335, up more than 25% year to date.

Fed dilemma?

U.S. Federal Reserve Chair Jerome Powell said in a speech that the central bank will “wait for greater clarity” before considering any interest rate adjustments. Powell expects higher tariffs to generate “higher inflation and slower growth,” and he warned about a possible “challenging scenario” in which the Fed struggles to balance its dual mandate to maximize employment while keeping prices stable.

Source: https://www.jhinvestments.com/weekly-market-recap