John Hancock: Weekly Market Recap Week Ended April 25
Earnings upgrade
The earnings growth rate for S&P 500 companies improved as earnings season entered its busiest period. First-quarter net income was expected to rise an average of 10.1% over last year’s first quarter, based on reports already released as of Friday and analyst forecasts for companies that haven’t yet reported, according to FactSet. A week earlier, the projected earnings growth rate was 7.0%.
Growth downgrade
The International Monetary Fund scaled back its forecasts for global economic growth, citing risks related to higher tariffs. The organization is now projecting a 2.8% annual GDP growth rate in 2025 and 3.0% in 2026. Three months ago―prior to the recent escalation in tariffs―the fund had forecast 3.3% growth rates in both 2025 and 2026.
Bond price rally
Prices of U.S. government bonds climbed, sending yields lower, amid an easing of recent volatility across the fixed-income market. The yield of the 10-year U.S. Treasury note closed around 4.26% on Friday, down from a recent intraday high of 4.59% on April 11. Yields for longer-dated Treasuries posted similar declines, with the 30-year bond finishing around 4.72%.
Busy week ahead
In addition to more quarterly earnings reports, the new week will bring a monthly jobs report, an initial estimate of first-quarter GDP growth, an inflation update, and other closely watched economic readings. The employment report will show how April’s jobs growth compared with March’s bigger-than-expected gain of 228,000 jobs.
SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news

