John Hancock: Weekly Market Recap Week Ended December 10th

Inflation persists

The annual inflation rate climbed in November to the highest level since 1982, marking the sixth month in a row in which the rate topped 5.0%. The government reported on Friday that the Consumer Price Index rose to 6.9%. Excluding the often-volatile categories of food and energy, the inflation rate was 4.9%, the highest since 1991.

Help wanted

Initial claims for unemployment benefits continued to fall to the lowest weekly levels in decades, while job openings remained historically high, providing further evidence of the nation’s tight labor market. The government reported on Wednesday that there were 11 million openings at the end of October, with nearly 5 million more open positions than people seeking work.

Growth tops value

U.S. large-cap growth stocks outperformed their value counterparts, as a growth stock index posted a weekly gain that was roughly double the size of a value benchmark’s rise.  The latest weekly result solidifies growth’s year-to-date performance edge over value.

Fed ahead

At its two-day meeting scheduled to conclude on Wednesday, the U.S. Federal Reserve is expected to consider accelerating the pace of its plan to trim its pandemic-era bond-purchasing program. The so-called taper proposal to begin reining in the Fed’s $120 billion in monthly bond purchases is a response to the recent persistence of high inflation. 

Source: https://wmr.jhinvestments.com/