John Hancock: Weekly Market Recap Week Ended March 27th

Relief rally

While it did little to ease the sting of recent losses that were on an even larger scale, stocks surged, and the major U.S. indexes posted weekly gains ranging from 9% to nearly 13%. Despite those results, the S&P 500 closed on Friday about 25% below its record high set just five weeks earlier.

Jobless surge

A record 3.28 million U.S. workers applied for unemployment benefits in a single week, nearly five times the previous high. The next weekly report, scheduled Thursday, April 2, could also show a further surge in applications linked to COVID-19, and the following day’s monthly employment report will provide the first broad look at the pandemic’s impact on jobs and wages.

Historic days

Although stocks mounted a big weekly comeback, volatility remained near historically high levels and the daily tumult produced some record-breaking numbers. A roughly 3% decline in the Dow on Monday was followed by an 11%, 2,113-point surge on Tuesday—the index’s largest single-day percentage jump since 1933, and the biggest point gain ever.

Stimulus catalyst

As the COVID-19 pandemic continued to expand, stocks took their cues in part from the congressional debate over a $2 trillion emergency spending bill. The Senate unanimously passed the economic stimulus measure early Thursday and the House approved it on an overwhelming voice vote on Friday, sending the bill to President Trump to sign into law. Nevertheless, stocks fell on Friday.

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