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John Hancock: Weekly Market Recap Week Ended February 25th

March 1, 2022
High inflation persists

A measure of inflation that the U.S. Federal Reserve uses to help set monetary policy climbed at the highest monthly rate since 1983. The government on Friday said core personal consumption expenditures price index rose at an annual rate of 5.2% in January. The same report showed that consumer spending rose 2.1%.


Market affordability

A down day for U.S. stocks on Wednesday sent the S&P 500’s forward price-to-earnings ratio to 18.5—below its five-year average for the first time since April 2020, according to FactSet. The forward P/E ratio is a valuation measure comparing the current share price of a stock or an index with its estimated earnings per share over the next 12 months.


Oil briefly at $100

The price of U.S. crude oil briefly topped $100 per barrel on Thursday morning—the first time that threshold has been reached since 2014. The spike came in the hours after the Russia-Ukraine war broke out, and the price retreated later in the day before ending the week little changed overall.


Jobs ahead

A monthly U.S. labor market update due out on Friday will show whether the strong growth recorded in January carried over into February. In January, the economy generated 467,000 jobs—well above economists’ consensus forecast— and upward revisions to job totals in late 2021 provided a further indication of the labor market’s resilience despite the Omicron variant.

 

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