John Hancock: Weekly Market Recap Week Ended April 5th
The rally that started in late December has returned stocks close to the record heights reached more than six months ago. As of Friday, the S&P 500 and Dow were both around 1.5% shy of their records, while the NASDAQ was about 2.1% below its peak.
Stocks rose on Friday after the latest monthly jobs report showed that February’s weak result could have been an anomaly. The U.S. economy generated 196,000 new jobs in March, while February’s job growth figure was revised upward to 33,000 from an initial estimate of 20,000. The unemployment rate remained unchanged at 3.8%.
Yield curve un-inverts
The curve that measures differences in yields between short- and long-dated U.S. Treasury debt returned to a mostly flat profile late in the week, as the 10-year bond’s yield climbed back to a level slightly above the 3-month bill’s yield. The change marked a reversal from a couple of weeks earlier, when the 10-year yield slipped below that of the 3-month note for the first time in more than a decade.
Prices of U.S. crude oil on Friday topped $63 per barrel for the first time in about five months. Prices were lifted by decreasing global oil production and Friday’s strong U.S. jobs report.