John Hancock: Weekly Market Recap Week Ended March 15

Rate outlook intact

Despite recently mixed progress in curbing inflation, a majority of U.S. Federal Reserve policymakers stuck with their earlier expectations to approve three interest-rate cuts by year end. Chair Jerome Powell said the first potential cut isn’t likely to occur until the Fed gains greater confidence that inflation is sustainably declining toward its 2% target

Fed-fueled gains

The stock market’s modest upward momentum early in the week shifted higher after the Fed policy announcement on Wednesday, when the major indexes posted their biggest gains of the week. The S&P 500, the NASDAQ, and the Dow had another positive day on Thursday, setting record closing highs.

Buybacks expand

U.S. companies bought back shares at a much faster pace in 2023’s fourth quarter than they did in the third quarter. Share repurchases by companies in the S&P 500 totaled about $219 billion, up 18% from the prior quarter’s $186 billion, according to S&P Dow Jones Indices. However, for full-year 2023, buybacks were down nearly 14% from 2022’s total.

Price check ahead

A report scheduled to be released on Friday could clear up some of the recent uncertainty over inflation’s trajectory. The Personal Consumption Expenditures Price Index is the U.S. Federal Reserve’s preferred gauge for tracking inflation. Although that measure increased in January at the slowest pace since March 2021, two more recent inflation-related reports produced figures that were slightly higher than expected.

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