John Hancock: Weekly Market Recap Week Ended February 13
Jobs resilience
U.S. jobs growth exceeded expectations, helping to ease recent concerns about labor market weakness. The gain of 130,000 jobs in January was more than double the number that most economists had forecast and up from 48,000 in December. January’s unemployment rate slipped to 4.3% from 4.4% the previous month.
Inflation moderation
Friday’s Consumer Price Index report extended a recent trend of slightly cooler-than-expected inflation. CPI rose at an annual rate of 2.4% in January, down from 2.7% the previous month, and the lowest figure since May 2025. Economists had forecast inflation of 2.5% in the latest month.
Earnings outperformance
With earnings season nearly three-quarters completed as of Friday, overall earnings growth remained well above analysts’ expectations relative to forecasts before the start of the reporting period. S&P 500 companies’ earnings were expected to rise by an average of 13.2% versus a forecast for about 8.3% growth as of December 31, according to FactSet.
GDP ahead
A report scheduled for release on Friday will show whether the U.S. economy’s recent rapid growth extended into last year’s fourth quarter. The government’s release of its initial GDP estimate follows the 4.4% annual growth rate recorded in the third quarter, which was the fastest in two years.
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