Risk Managed Strategy Funds

John Hancock: Weekly Market Recap Week Ended August 7

August 11, 2026

Earnings juggernaut

Profits continued to improve as earnings season entered its final stretch, with analysts now expecting the strongest growth rate since the second quarter of 2021. Second-quarter net income is expected to rise an average of 50.4% for companies in the S&P 500, based on reports already released as of Friday and forecasts for the relatively small number of firms that hadn’t yet reported, according to FactSet. In contrast, the projected earnings growth rate at the end of June was just 23.1%.

Rate hike outlook

In the wake of Friday’s weak jobs report, bond market trading reflected declining expectations for a U.S. interest rate increase at the mid-September U.S. Federal Reserve meeting. Friday’s trading in rate futures markets implied a roughly 42% probability that the Fed would lift its benchmark rate by a quarter-point, with a 58% prospect of the rate staying unchanged, according to CME FedWatch. Just a week earlier, prospects for a rate increase were at 67%.

 

Volatility eases

An index that tracks investors’ expectations of short-term U.S. stock market volatility fell to the lowest level in seven months. The Cboe Volatility Index closed at 14.9 on Friday, down from a recent high of 20.7 reached on July 29.

 

CPI ahead

A Consumer Price Index report scheduled for release on Wednesday will show whether a recent trend of moderating inflation extended into July. The most recent CPI report showed an annual rate of 3.5% in June—well below May’s figure of 4.2%, largely due to lower energy prices. Excluding energy and food prices, core inflation was 2.6% in June.

 

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