Risk Managed Strategy Funds

John Hancock: Weekly Market Recap Week Ended May 8

May 12, 2026

Earnings juggernaut

Profits continued to improve as earnings season entered its final stretch, with analysts now expecting the strongest growth rate since the fourth quarter of 2021. First-quarter net income is expected to rise an average of 27.7% for companies in the S&P 500, based on reports already released as of Friday and forecasts for the relatively small number of firms that hadn’t yet reported, according to FactSet. At the end of March, the projected earnings growth rate was just 13.1%.

 

Jobs improvement

The U.S. economy recorded back-to-back monthly jobs gains after alternating between gains and losses each of the previous 10 months. On Friday, the government reported a higher-than-expected gain of 115,000 jobs in April on the heels of March’s upwardly revised figure of 185,000. April’s unemployment rate stayed unchanged at 4.3%.

 

30-year yield hits 5%

The latest surge in oil prices on Monday raised fresh concerns about inflation, and the yield of the 30-year U.S. Treasury eclipsed the 5.00% threshold for the first time in nearly 10 months. However, the rise was brief, and 10-year and 30-year Treasury yields were down slightly for the week, finishing at 4.37% and 4.95%, respectively.

 

CPI ahead

A Consumer Price Index report scheduled for release on Tuesday will show whether a recent spike in inflation extended into April amid higher energy prices. The most recent CPI report showed an annual inflation rate of 3.3% in March, up from the previous month’s 2.4% reading. In March, the energy price component of CPI surged 12.5% on a year- over-year basis.

 

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