John Hancock: Weekly Market Recap Week Ended March 8

Steady labor market

February’s jobs growth figure of 275,000 came in above most economists’ expectations for around 200,000 and extended a recent run of solidly positive labor market momentum. However, initial jobs gain estimates for December and January were revised downward, the unemployment rate rose to 3.9%, and wage growth slowed.

Powell’s caution

In testimony before Congress, U.S. Federal Reserve Chair Jerome Powell reiterated the central bank’s intention to cut interest rates at some point this year, provided inflation data continues to show continued easing. “We want to see a little bit more data,” Powell said during one of the week’s two congressional hearings.

Yield pullback

The yield of the 10-year U.S. Treasury bond fell to its lowest level in five weeks. The yield closed around 4.08% on Friday, down from a recent closing high of 4.33% on February 22. However, the yield remained well above its year-end 2023 level of 3.88%.

Price check ahead

A Consumer Price Index report scheduled for release on Tuesday will show whether a recent trend of slightly hotter-than-expected inflation extended into February. Last month’s CPI report showed an annual rate of 3.1% in January; a separate report on wholesale prices showed the fastest monthly price rise in five months.

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