John Hancock: Weekly Market Recap Week Ended January 5

Yields bounce back

The yield of the 10-year U.S. Treasury bond climbed back above 4.00%, snapping a string of three weekly declines, as generally positive economic data fueled concerns that the U.S. Federal Reserve could delay interest-rate cuts. The 10-year Treasury’s closing yield on Friday was 4.04%, up from 3.88% at the end of the previous week.

Dividend records

Companies in the S&P 500 distributed a record $588 billion in dividend payments in 2023, up more than 4% from the previous year, according to S&P Dow Jones Indices. For the fourth quarter, payments were up 5% relative to the same quarter a year earlier, climbing to a record $154 billion.

As January goes …

Historically, January’s stock market performance has been a strong indicator of what may be in store for the rest of the year. In fact, 70.5% of the time since 1929, the S&P 500 has posted a positive return for the year after gaining ground in January or has gone on to post an annual loss when the market has declined in the first month, according to S&P Dow Jones Indices.

Price check ahead

A Consumer Price Index report scheduled to be released on Thursday will show whether the recent favorable trends in inflation extended into December. In November, inflation rose at an annual 3.1% rate, down from 3.2% the previous month; excluding volatile food and energy prices, core inflation rose 4.0% in November.

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