John Hancock: Weekly Market Recap Week Ended March 14

Inflation moderation

A Consumer Price Index report and a subsequent reading on prices at the wholesale level reversed a recent trend of slightly hotter-than-expected inflation. Wednesday’s consumer prices report showed that core inflation, excluding volatile energy and food prices, rose at an annual rate of 3.1% in February. The figure was down from 3.3% in January and was below economists’ consensus forecast.

Consumer anxiety

U.S. consumer sentiment has weakened to the lowest level since November 2022, based on Friday’s preliminary monthly report from a University of Michigan survey. The drop from a late February index reading of 64.7 to 57.9 was a much bigger decline than economists had forecast, and growing numbers of survey participants said they expect inflation and unemployment to rise.

Gold record

The price of gold set a new record on Friday morning and briefly eclipsed the $3,000-per-ounce level for the first time. Silver also rallied, topping the $34-per-ounce level and approaching its highest level in five months. On a year-to-date basis, the price of gold was up more than 13%.

Fed ahead

It’s widely expected that the U.S. Federal Reserve will keep interest rates unchanged when it concludes a two-day meeting on Wednesday, although the Fed’s updated economic projections and comments from Chair Jerome Powell could move markets. The timing of further rate cuts has been clouded by mixed readings on inflation and concerns about tariffs.

Source: https://www.jhinvestments.com/weekly-market-recap#market-moving-news