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John Hancock: Weekly Market Recap Week Ended February 14

February 18, 2025

Fed’s rate wait

U.S. Federal Reserve Chair Jerome Powell said in congressional testimony that Fed policymakers need to see more progress in curbing inflation before considering further interest-rate cuts. Powell declined to specify the inflation rate that might trigger the Fed to approve a further cut in its benchmark rate, which has remained in a range of 4.25% to 4.50% since the last cut in December.

 

Earnings momentum

With earnings season nearing an end, profits continued to exceed expectations. As of Friday, analystys expected fourth-quarter net income to rise 16.9% compared with the same quarter a year earlier, based on the three-quarters of S&P 500 companies that had reported results and forecasts for companies that hadn’t yet posted results. Before earnings season, analysts had expected growth of 11.8%.

 

Precious metals rally

The price of gold climbed to a record high in a day of volatile metals trading on Friday,  reaching as high as $2,964 before retreating in afternoon trading. Silver also rallied and then stalled, briefly reaching the $34-per-ounce level and approaching the highest price in more than a decade.

 

Sticky inflation

Wednesday’s Consumer Price Index report extended a recent trend of slightly hotter-than-expected inflation. Core inflation, excluding volatile energy and food prices, rose at an annual rate of 3.3% in January. That result was above economists’ consensus forecast and slightly above the previous month’s annual figure.

 

SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news