John Hancock: Weekly Market Recap Week Ended October 4th
New unemployment low
The 136,000 U.S. jobs added last month extended a recent run of modest, steady job growth, while the unemployment rate fell to 3.5%, the lowest in nearly 50 years. Wage growth was sluggish, with an annual rate of 2.9%—a pullback from previous months, but still higher than inflation.
Uneven results
The S&P 500 and the Dow fell modestly for the third consecutive week while the NASDAQ rose slightly. The market’s late-week comeback couldn’t offset a two-day rout on Tuesday and Wednesday, when the S&P 500 dropped a combined 3.0%.
Negative indicators
A monthly gauge of U.S. manufacturing activity dropped to its lowest level since 2009, a key factor that sent the S&P 500 down 1.2% on Tuesday. On Thursday, another monthly indicator that tracks services activity across the U.S. economy fell to a three-year low.
Talks on tap
High-level trade discussions between China and the United States are scheduled to resume Thursday in Washington. Negotiators are still trying to get discussions back on track after talks broke down in May, triggering a recent round of tariff increases.
Source: https://wmr.jhinvestments.com/