John Hancock: Weekly Market Recap Week Ended March 12th
The Dow crossed the 32,000 point level for the first time on Wednesday, then pushed its record higher on Thursday as the S&P 500 and Russell 2000 also posted historic highs. It’s been a quick surge to 32,000 for the Dow, which eclipsed 31,000 in early January; in late November, it topped 30,000.
The recent price slide in the U.S. Treasury bond market continued, as yields extended their rise. After closing the previous week at 1.55%, the yield of the 10-year note slipped as low as 1.50% on Thursday before surging on Friday to 1.63%—the highest in 13 months.
Value leads growth
For the fourth week in a row, U.S. value stocks outperformed growth stocks—a short-term shift that threatens to reverse the growth style’s run of outperformance in recent years. A value stock benchmark gained 3.2% while a growth benchmark added 2.5%; over four weeks, the value index rose 5.9% while its growth counterpart fell 5.5%.
The U.S. Federal Reserve is widely expected to keep its benchmark interest rate unchanged—and at a near-zero level—when it concludes a two-day meeting on Wednesday. Fed statements will be closely watched in the wake of a recent rise in bond yields, driven in part by inflation concerns.