John Hancock: Weekly Market Recap Week Ended November 9th
November’s strong start
The S&P 500 and the Dow both gained more than 2% for the second week in a row, recovering much of the ground lost in October’s sharp decline. However, technology stocks continued to lag the broader market, and the NASDAQ trailed other major indexes by a wide margin.
Bond prices fell, and the yield of the 10-year U.S. Treasury bond climbed on Thursday to 3.24%—the highest level since 2011, and slightly ahead of a previous year-to-date high set in early October. As recently as late August, the 10-year note’s yield was just 2.82%.
The U.S. Federal Reserve Board on Thursday kept interest rates unchanged in the wake of an increase approved in late September, and it issued a statement emphasizing the economy’s strength. At its next meeting in mid-December, the Fed is widely expected to lift rates for the fourth time this year.
A report on consumer prices scheduled to be released Wednesday is likely to be one of the week’s most closely watched economic data points. A key question is whether the inflation slowdown that was reflected in September’s Consumer Price Index carried through to October’s CPI reading.