John Hancock: Weekly Market Recap Week Ended August 24th
Steady Fed
Wednesday’s release of minutes from the U.S. Federal Reserve’s most recent policy meeting bolstered expectations that officials are likely to raise interest rates again at their next meeting, which opens on September 25. On Friday, Fed Chairman Jerome Powell spoke in Jackson Hole, Wyoming, where he defended the central bank’s plan to raise rates gradually.
S&P 500 record
The S&P 500 and the Dow both rose less than 1% for the second week in a row, trailing the NASDAQ’s nearly 2% rise. The S&P 500 climbed to a record level, surpassing its previous high set on January 26, 2018, while the Dow remained about 3% below its record level of that date.
Long time coming
The S&P 500 took its time in setting a new record high relative to the rapid succession of new records established over the past couple years. The nearly seven months needed to beat the index’s prior record was the longest such period since July 8, 2016, when the S&P 500 ended a stretch of more than 13 months without setting a record high.
Treasury rally
Prices of U.S. government bonds rallied again, sending the yield of the 10-year U.S. Treasury bond further below the 3.00% level that it reached at the start of August. The yield tumbled on Monday to 2.82%, the lowest in three months, and it remained close to that level through the rest of the week.
Marathon bull
The bull market crossed a historic threshold on Wednesday when it became the longest bull market ever, surpassing the 9½-year-long rally that ended in early 2000. The current bull dates to March 2009, when stocks began to recover from the market’s low point during the global financial crisis. Since then, the S&P 500 has more than quadrupled in price terms.
Source: https://wmr.jhinvestments.com