John Hancock: Weekly Market Recap Week Ended November 8

Fed cuts again

The U.S. Federal Reserve cut its benchmark rate by a quarter-percentage point, following up on its half-point reduction approved in September. The latest move was widely expected, and stocks and Treasury yields were steady after Thursday’s announcement.

Treasury volatility

Yields of U.S. government bonds ended slightly down for the week, but only after a rough ride that saw the yield of the 10-year Treasury briefly surge to 4.48% in intraday trading on Wednesday. However, the yield subsequently retreated and closed around 4.30% on Friday, down from the prior week’s close of 4.37%.

Sentiment rises

U.S. consumer sentiment rose to the highest level in seven months, exceeding most economists’ expectations. Friday’s preliminary reading from the University of Michigan’s Consumer Sentiment Index was based on a survey conducted on Monday, prior to Tuesday’s election.

Inflation report ahead

On the heels of the U.S. Federal Reserve’s latest interest-rate cut, a Consumer Price Index report scheduled for release on Wednesday will show whether the recent mixed readings on inflation extended into October. The latest CPI report covering September showed an annual rate of 2.4%, down from August’s 2.5% figure. However, September’s core inflation figure, excluding energy and food prices, was 3.3%, above the previous month’s 3.2% rate.

Source: https://www.jhinvestments.com