John Hancock: Weekly Market Recap Week Ended January 23
U.S. GDP upgrade
The U.S. economy’s rapid growth in the third quarter of last year was slightly more robust than initially estimated. The government’s updated figure put the quarter’s annual GDP growth rate at 4.4%, up from a previous estimate of 4.3%. The result was up from a 3.8% rate in the second quarter and marked the fastest growth rate since the third quarter of 2023.
Metals dazzle
Precious metals prices surged again, extending rallies that have lifted gold and silver well above their previous record levels. Gold was trading around $4,980 per ounce on Friday afternoon, while silver surpassed $100 per ounce for the first time, just a couple of weeks after it first breached the $80 threshold.
Earnings update
Expectations rose slightly as a second week’s batch of quarterly results came in. As of Friday, analysts projected that earnings for S&P 500 companies rose 8.2% in the fourth quarter versus an 8.0% estimate after the opening week of earnings season, according to FactSet. The figures are based on companies that have already reported plus projections for those that haven’t yet released results.
Fed pause ahead?
Bond market trading ahead of the U.S. Federal Reserve’s next meeting continued to support expectations of a pause in the recent string of interest rate cuts. Friday’s trading in rate futures markets implied a 97% probability that the Fed would keep rates unchanged, according to CME FedWatch. The Fed has cut rates at each of its three most recent meetings, and its next two-day meeting concludes on Wednesday.
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