John Hancock: Weekly Market Recap Week Ended October 10

Dividends rise

The growth rate for dividend payments by U.S. companies accelerated in this year’s third quarter. The $10.6 billion in net dividend increases recorded by companies in the S&P 500 was well above the previous quarter’s $7.4 billion, according to S&P Dow Jones Indices, which said it expects full-year dividend increases to climb to a record level in 2025 with a forecast for a nearly 6% rise over 2024.

Gold record

Gold futures posted their eighth weekly gain in a row and the precious metal topped the $4,000-per-ounce level for the first time ever. At Friday afternoon’s price of around $4,030, At Friday afternoon’s price of around $4,030, gold’s year-to-date gain was around 50%. Silver was up more than 70%.

Fed outlook

Although the U.S. government shutdown continued to delay the release of economic reports, it didn’t stop the U.S. Federal Reserve from releasing minutes from the recent meeting at which it cut its benchmark rate by a quarter point. Wednesday’s release reaffirmed investor expectations for further cuts before year end, as a majority of Fed members cited risks that labor market conditions could weaken further without additional rate cuts.

Earnings ahead

As major U.S. banks prepared to open quarterly earnings season on Tuesday, analysts were forecasting that third-quarter earnings for all companies in the S&P 500 rose by an average of around 8.0% overall, according to FactSet. A positive result would mark the ninth consecutive quarter of year-over-year earnings growth.

SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news