John Hancock: Weekly Market Recap Week Ended September 14th

Bouncing back

The major stock indexes rose around 1% for the week, making up ground after declining the previous week. The S&P 500 and the NASDAQ remained slightly below their record highs set in late August, while the Dow was about 2% shy of its record set in late January.

Industrial comeback

Industrials sector stocks have trailed the broader market so far this year, but they’ve outperformed recently. The sector climbed nearly 5% over the monthlong period that ended Thursday, making it the top performer among 11 sectors in the S&P 500.

Inflation moderation

Despite recent upticks in wages and consumer prices, inflation softened during August. The Consumer Price Index rose at a 2.7% annual rate last month, down from 2.9% in July. A separate report showed retail sales growth slowed in August relative to July’s rapid gain.

Factories humming

U.S. industrial output rose more than expected in August, largely because of increased production of vehicles and automotive parts. Overall, industrial production was up 4.9% compared with the same month a year earlier.

Flirting with 3%

The yield of the 10-year U.S. Treasury bond climbed for the third week in a row, rising to 3.00% in intraday trading on Friday. As recently as August 24, the yield was just 2.82%. Expectations of rising inflation have helped push yields higher in recent weeks.

Source: https://wmr.jhinvestments.com