John Hancock: Weekly Market Recap Week Ended October 9

Elevated earnings

Wall Street analysts maintained high expectations as major U.S. banks prepared to open quarterly earnings season. As of Friday, analysts surveyed by FactSet were forecasting an average third-quarter earnings growth rate of 29.6% for companies in the S&P 500. Such an outcome would mark the third consecutive quarter of earnings growth exceeding 25%.

Fed’s rate outlook

Wednesday’s release of minutes from the latest U.S. Federal Reserve meeting showed that policymakers anticipate possibly raising interest rates again before year end. However, it was unclear how soon such a raise might come. At its meeting in mid-September, the Fed raised its benchmark rate for the first time since 2023. Its next policy meeting ends on October 28.

Record highs

A strong start to the week lifted the S&P 500 and the NASDAQ to record highs on Tuesday. Neither index was able to push its record higher as the week progressed, but both finished around 1% higher overall, as did the Dow.

CPI report ahead

A Consumer Price Index report scheduled for release on Wednesday will provide a major data point for the U.S. Federal Reserve ahead of its policy meeting late this month. The most recent CPI report released in September showed inflation at a 3.4% annual rate in August, unchanged from the previous month and still well above the Fed’s 2.0% target.

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