John Hancock: Weekly Market Recap Week Ended May 5

Another jobs surprise

U.S. labor market performance continued to surprise on the upside, as the 253,000 jobs added in April exceeded expectations and topped the previous month’s downwardly revised figure of 165,000. The unemployment rate slipped to 3.4%, the lowest level since 1969.

Earnings outlook brightens

With roughly 85% of S&P 500 companies having reported first-quarter results as of Friday, key metrics this earnings season have come in better than their one-year averages, according to FactSet. In addition, the research firm reports that the overall earnings outlook for full-year 2023 has improved in recent weeks

Fed pause ahead?

For its tenth meeting in a row, the U.S. Federal Reserve lifted its benchmark interest rate, but it hinted at the possibility of a pause in its rate-hiking cycle. As it raised its benchmark rate to a range of 5.00% to 5.25%, the Fed’s latest policy statement removed language that had been in previous statements indicating that it “anticipates that some additional policy firming may be appropriate.”

Price check ahead

A Consumer Price Index report scheduled to be released on Wednesday will show whether the recent moderation in inflation extended into April. In March, inflation fell to a 5.0% annual rate from 6.0% the previous month, bringing inflation to the lowest level in nearly two years.

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