John Hancock: Weekly Market Recap Week Ended June 5th
Climbing back
Friday’s unexpectedly strong jobs report fueled a rally that left the S&P 500 up 43% from a recent low on March 23 and down just 0.3% year to date. The index was less than 6% below its record high, which was reached less than four months ago.
Change in character
Although the Dow has underperformed the NASDAQ and the S&P 500 this year, it led the latest week’s rally, gaining about 7%. The Dow’s strong result came as many value-oriented and economically sensitive cyclical stocks outperformed after trailing growth stocks much of this year.
Rally time
Stocks surged, climbing for the third week in a row, amid signs that the economy is recovering faster than many had expected from the impact of the coronavirus pandemic. The NASDAQ on Friday set an intraday record, eclipsing its prior peak set less than four months earlier, and the major indexes’ weekly gains ranged from around 3% to 7%.
Small-cap surge
Small-cap stocks outperformed the broader U.S. stock market by a wide margin, as a small-cap benchmark, the Russell 2000 Index, added more than 8% for the week. The gain extended a recent run of strong performance for small caps.