John Hancock: Weekly Market Recap Week Ended July 5th
Jobs rebound
After May’s weak jobs gain of 72,000, the 224,000 increase in the June report exceeded expectations, topping the average monthly increase so far this year. The latest monthly gain led analysts to suggest that the U.S. Federal Reserve could be less aggressive about cutting interest rates when it concludes its next policy meeting on July 31.
Sector watch
Just over half of the way into the year, information technology is the top-performing sector in the S&P 500 with a price gain of more than 29%. At the other end, the healthcare and energy sectors are the laggards, with gains of around 9% to 10%, respectively.
Dividend bonanza
Dividend payments by companies in the S&P 500 are projected to grow around 9% this year, based on announcements made so far this year, according to S&P Dow Jones Indices. Dividend payments are expected to break a record for the eighth year in a row.
Fed chair in spotlight
U.S. Federal Reserve Chairman Jerome Powell is scheduled to make his semiannual monetary policy report to a House committee on Wednesday; the following day, he’ll appear before a Senate panel. Powell is likely to face questions about signals the Fed has recently sent about the potential for interest-rate cuts.