John Hancock: Weekly Market Recap Week Ended November 29

November rebound

U.S. stock indexes surged in November, recording the sixth positive result out of the past seven months and recovering from a slightly negative October. The Dow added about 7.5%, the NASDAQ gained about 6.2%, and the S&P 500 rose 5.7%.

Sideways inflation

Recent progress in bringing inflation down further has stalled, based on Wednesday’s reading from the U.S. Federal Reserve’s preferred inflation gauge. The Personal Consumption Expenditures Index rose at an annual rate of 2.3% in October, up from 2.1% the previous month. Excluding energy and food prices, the core PCE Index rose 2.8% in October, up from 2.7% in September.

Fed outlook

Although inflation remains above the U.S. Federal Reserve’s 2% long-term target, Fed officials recently expressed confidence that price pressures have been easing and that the labor market remains strong. The statements were included in minutes released on Wednesday from the Fed’s November 6–7 policy meeting. The next Fed meeting is scheduled for December 17–18.

Jobs ahead

A monthly labor market report due out on Friday will show whether a recent slowdown in U.S. jobs growth extended into November. In October, the economy generated 12,000 new jobs—far below the previous month’s strong gain and the smallest increase since December 2020. In addition, initial jobs gain figures for August and September were revised downward. The unemployment rate was unchanged at 4.1%.

Source: https://www.jhinvestments.com/weekly-market-recap#market-moving-news