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John Hancock: Weekly Market Recap Week Ended May 2

May 6, 2025

Resilient labor market

U.S. stock indexes rose on Friday after an employment report exceeded most economists’ expectations for the second month in a row. The economy generated 177,000 new jobs in April, above consensus expectations for around 130,000. The unemployment rate held steady at 4.2%.

 

Another upgrade

Nearly three-quarters of the way through earnings season, the latest batch of reports prompted analysts to lift their overall expectations again. As of Friday, first-quarter earnings for S&P 500 companies were expected to rise an average of 12.8%, based on reports already released and forecasts for companies that haven’t yet reported, according to FactSet. Two weeks earlier, the projected earnings growth rate was 7.0%.

 

Maintaining momentum

The major U.S. indexes posted weekly gains of around 3% as stocks extended the previous week’s positive trend. For the S&P 500, Friday’s gain marked the ninth positive day in a row―that index’s longest such streak since November 2004.

 

Fed ahead

It’s widely expected that the U.S. Federal Reserve will keep interest rates unchanged again when it concludes a two-day meeting on Wednesday. However, rate cuts could still be coming; Friday’s prices in interest rate futures markets implied that most investors were expecting at least three quarter-point rate cuts by year end, according to CME Group’s FedWatch tool.

 

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