John Hancock: Weekly Market Recap Week Ended March 10th

Jobs machine

A monthly gain of 311,000 U.S. jobs that was reported on Friday couldn’t match the surge of more than 500,000 positions added in January, but the latest result again exceeded most economists’ expectations. The government also reported that wages rose at a moderate 0.2% in February relative to January, which could ease inflationary pressures.

Losing traction

The three major U.S. stock indexes all sustained steep weekly losses of around 4.5% and the S&P 500 fell to its lowest level since early January. The sell-off was deeper among smaller companies, as a small-cap benchmark dropped more than 8%.

Hawkish Fed chair

In testimony before Congress, U.S. Federal Reserve Chair Jerome Powell struck a hawkish tone, suggesting that the course of interest-rate increases could steepen and last longer than expected if inflation remains high. His comments weighed on stocks Tuesday, as they marked a shift from recent expectations for a pause in rate hikes.

Price check ahead

A Consumer Price Index report scheduled to be released on Tuesday will show whether recent troubling trends on inflation extended into February. The latest report covering January showed that the government’s Consumer Price Index fell less than expected to an annual rate of 6.4%, fueling concern that there’s no immediate end in sight to further interest-rate increases.

Source: https://wmr.jhinvestments.com/