John Hancock: Weekly Market Recap Week Ended March 15th

Restrained inflation

The latest monthly reading on U.S. inflation shows that prices remain stable—a trend that aligns with the U.S. Federal Reserve’s current neutral stance on interest-rate policy. The Consumer Price Index rose 1.5% in February on an annualized basis, the slowest pace since September 2016.

Momentum regained

After falling for five days in a row in the previous week, the major U.S. stock indexes recaptured their positive momentum from January and February. Information technology stocks led the rally as the NASDAQ climbed nearly 4%, the S&P 500 added about 3%, and the Dow rose around 1%.

Divergent paths

Performance gaps between the major indexes were large, with the Dow trailing its peers by a wide margin. One reason was the nearly 10% weekly decline for Boeing, one of 30 stocks in the index. Its shares slid in the wake of a deadly crash of a Boeing 737 MAX in Ethiopia.

Fed ahead

The U.S. Federal Reserve is expected to keep interest rates unchanged on Wednesday when it concludes a two-day policy meeting, just as it did at its most recent meeting in late January. Many economists now believe the Fed is unlikely to approve any rate hikes this year, unless there’s a reversal of a recent weakening trend in economic data.

Source: https://wmr.jhinvestments.com