Risk Managed Strategy Funds

John Hancock: Weekly Market Recap Week Ended June 5

June 9, 2026

Jobs momentum

Recent labor market strengthening extended into May, as jobs growth surpassed economists’ consensus expectations for the third month in a row. The economy added 172,000 jobs, and upward revisions of prior estimates produced an average monthly gain of 188,000 jobs over the past three months. That’s the strongest three-month average since March 2024.

 

Inside Q1 earnings

Companies in the S&P 500 posted an average earnings gain of 28.6% over the same quarter a year earlier, according to FactSet data from the recently concluded first-quarter earnings season. That result marked the highest growth rate since the fourth quarter of 2021 and the sixth consecutive quarter of double-digit growth. Information technology posted a 54.0% earnings gain, the highest among all 11 sectors.

 

Rate hike outlook

Bond market trading reflected rising expectations for a U.S. interest rate increase by year end. Friday’s trading in rate futures markets implied a roughly 72% probability that the Fed would lift its benchmark rate by anywhere from a quarter-point to three-quarters of a point by December, according to CME FedWatch. The probability of rates remaining unchanged was 27%, with less than a 1% probability of a cut.

 

CPI report ahead

A Consumer Price Index report scheduled for release on Wednesday will show whether a recent trend of rising inflation extended into June. The most recent CPI report showed an annual rate of 3.8% in April—the highest level since May 2023—with energy costs accounting for 40% of the increase from March’s 3.3% figure. Excluding energy and food prices, core inflation was 2.8% in April.

 

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