John Hancock: Weekly Market Recap Week Ended May 22nd

Modest breakout

The major U.S. stock indexes climbed more than 3%, breaking out of a rut that has largely kept stocks in a holding pattern since late April. The S&P 500 climbed to its highest level since early March and was up 32% from a recent low on March 23.

Small-cap surge

Small-cap stocks outperformed the broader U.S. stock market by a wide margin, as a small-cap benchmark, the Russell 2000 Index, added nearly 8% for the week. The gain extended a recent run of strong performance for small caps.

Low visibility

Uncertainty stemming from the coronavirus pandemic has caused many companies to abandon earnings forecasts they previously issued for this year. Among those S&P 500 companies that discussed their full-year outlooks during the quarterly earnings season that’s now winding down, nearly two-thirds had withdrawn their previous guidance as of May 21, according to FactSet.

Crude comeback

U.S. crude oil prices surged for the fourth consecutive week, eclipsing $34 per barrel on Thursday. That level is up sharply from oil’s historic lows in April, when some U.S. oil futures contracts briefly slipped below $0. In a further sign of oil’s stabilization, prices for physical oil and oil futures have been closely aligned in recent days.

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