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John Hancock: Weekly Market Recap Week Ended August 30th

September 4, 2019

 

Consumer resilience

U.S. consumer spending continues to be a bright spot amid a weakened global economic outlook and recently soft U.S. manufacturing data. Consumer spending recorded a 0.6% gain in July relative to June, with the rate of growth picking up from previous months.

 
Good vibrations

Although a new round of tariffs on Chinese goods took effect entering September, tensions between the United States and China appeared to ease. President Donald Trump on Monday said that he believed China wanted a trade deal, and China’s Ministry of Commerce on Thursday said that the two sides remained “in effective communication” about the dispute.

 

New normal: 2% growth

The U.S. government’s latest estimate of economic growth confirmed the recent slowdown. The report pegged second-quarter GDP growth at an annual rate of 2.0%, slightly below an initial 2.1% estimate and far below the first quarter’s figure of 3.1%

 

Moving in lockstep

Through most of August, the sectors that make up the U.S. stock market rarely moved in different directions. Through Wednesday, the S&P 500’s 11 sectors had either risen or fallen together during 11 trading sessions. That’s the highest number of such instances in a month since January 2016, according to The Wall Street Journal.

 

Source: https://wmr.jhinvestments.com