Weekly Market Recap
Week ended June 12
Market-moving news
Jagged path
The 0.7% returns that the S&P 500, NASDAQ, and Dow each posted for the week didn’t come easily, as stocks sold off on Wednesday before rebounding on Thursday and Friday. The modest overall results left the indexes below the record levels recorded in the first few days of June.
Elevated inflation
A Consumer Price Index report showed inflation running at 4.2% in May, the highest level in more than three years. Despite the rise in the annual rate, the month-to-month change eased slightly compared with April’s CPI figure, and inflation readings for non-energy categories were relatively stable. A separate report on wholesale prices showed a 6.5% annual rate for the Producer Price Index, the highest since November 2022.
Small-cap record
A U.S. small-cap stock index outpaced its large-cap peers by a wide margin, climbing to a record high and extending small caps’ year-to-date performance leadership. The Russell 2000 Index finished around 4% higher for the week and was up 19% year to date.
European rate hike
The European Central Bank raised its benchmark interest rate for the first time since 2023, lifted its inflation forecast, and downgraded its economic growth outlook. In announcing Thursday’s widely expected quarter-point rate hike, ECB policymakers cited inflationary pressures, elevated energy prices, and the Middle East conflict.
Oil’s bumpy ride
Oil prices continued to take cues from developments in the Middle East, with U.S. crude jumping more than 3% on Wednesday, only to fall on Friday afternoon to the lowest level since mid-April. Oil climbed above $93 per barrel on Wednesday and was trading around $84 on Friday afternoon, down about 6% for the week.
Volatility push-pull
An indicator that tracks investors’ expectations of short-term U.S. stock market volatility traded in a wide range, reflecting shifts in the outlook for the Middle East conflict. On Wednesday, the Cboe Volatility Index closed at the highest level since April 7; by Friday’s close, however, the VIX was trading nearly 18% below the previous week’s closing level.
Sentiment uptick
A monthly gauge of U.S. consumer sentiment improved, snapping a string of three consecutive monthly declines amid elevated energy prices. The University of Michigan’s survey results released on Friday showed that sentiment rose to a preliminary June reading of 48.9 from a final May figure of 44.8.
Fed chair’s debut
The two-day U.S. Federal Reserve meeting that’s scheduled to conclude on Wednesday will be the first session led by Kevin Warsh, who’s taking over as Fed chair after his nomination cleared Congress last month. While the Fed is expected to keep interest rates unchanged, Warsh’s post-meeting news conference and an updated policy statement could offer clues about current market expectations for a potential rate hike by year end.
The week ahead: June 15-19
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Investment returns
Equities
U.S. equity size and style total returns as of 6/12/26 (%)
1 week
| 2.5 | 0.8 | -0.8 | Large | |
| 2.7 | 2.4 | 1.1 | Medium | |
| 4.1 | 3.9 | 3.7 | Small | |
| Value | Core | Growth | ||
YTD
| 15.7 | 9.0 | 3.0 | Large | |
| 16.6 | 13.3 | 3.0 | Medium | |
| 20.8 | 19.2 | 17.7 | Small | |
| Value | Core | Growth | ||
Index/market total returns as of 6/12/26 (%)
| Close | 1 week | YTD | |
|---|---|---|---|
| Dow Jones Industrial Average | 51,202.3 | 0.7 | 7.4 |
| NASDAQ Composite Index | 25,888.8 | 0.7 | 11.7 |
| S&P 500 Index | 7,431.5 | 0.7 | 9.2 |
| MSCI EAFE Index | 3,103.0 | 1.0 | 9.3 |
| Cboe Volatility Index | 17.7 | -17.7 | 18.0 |
International/developed (%)
| 1 week | YTD | |
|---|---|---|
| EAFE | 1.0 | 9.3 |
| Europe | 1.9 | 7.8 |
| France | 1.8 | 3.7 |
| Germany | -0.5 | -0.2 |
| Italy | 3.0 | 11.5 |
| Japan | -1.6 | 14.0 |
| Spain | 2.4 | 7.8 |
| Switzerland | 2.1 | 5.9 |
| U.K. | 1.2 | 7.3 |
Emerging markets (%)
| 1 week | YTD | |
|---|---|---|
| EM | 0.0 | 23.4 |
| Brazil | 2.4 | 10.3 |
| China | -0.7 | -8.8 |
| India | 0.5 | -11.5 |
| Indonesia | 9.3 | -36.5 |
| Korea | 0.9 | 108.5 |
| Mexico | 4.8 | 15.5 |
| Russia | #N/A | #N/A |
| Taiwan | -2.2 | 56.9 |
S&P 500 sectors (%)
| 1 week | YTD | |
|---|---|---|
| S&P 500 Index | 0.7 | 9.2 |
| Communication services | -1.9 | 3.1 |
| Consumer discretionary | 0.7 | -1.5 |
| Consumer staples | 2.6 | 11.4 |
| Energy | -0.3 | 28.7 |
| Financials | 2.0 | -2.0 |
| Healthcare | 0.5 | -0.2 |
| Industrials | 1.1 | 14.0 |
| Information tech | 0.5 | 17.8 |
| Materials | 3.0 | 14.0 |
| Real estate | 1.5 | 17.3 |
| Utilities | 0.4 | 5.1 |
Fixed income, currencies, and commodities
U.S. fixed-income style total returns as of 6/12/26 (%)
1 week
| 0.1 | 0.4 | 0.8 | High | Credit quality |
| 0.2 | 0.5 | 0.8 | Medium | |
| 0.2 | 0.4 | 0.9 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
YTD
| 1.1 | 0.1 | -0.3 | High | Credit quality |
| 0.6 | 0.4 | 1.3 | Medium | |
| 1.7 | 1.7 | 1.8 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
U.S. Treasury bond yields as of 6/12/26 (%)
| END OF WEEK | PRIOR YEAR END | YTD CHANGE (BPS) | |
|---|---|---|---|
| 2 Yr | 4.08 | 3.48 | 60 |
| 10 Yr | 4.48 | 4.16 | 32 |
| 30 Yr | 4.97 | 4.84 | 13 |
| 2-10 spread | 40 | 68 | 28 |
| 10-30 spread | 49 | 68 | 19 |
U.S. bond sector total returns (%)
| 1 week | YTD | |
|---|---|---|
| Aggregate | 0.5 | 0.3 |
| Bank loans | -0.1 | 0.3 |
| Convertible | 1.4 | 20.8 |
| Corporate | 0.6 | 0.2 |
| High yield | 0.4 | 1.7 |
| MBS | 0.7 | 0.7 |
| Municipal | -0.1 | 1.6 |
| Preferreds | 0.3 | -0.6 |
| TIPS | 0.3 | 1.2 |
| Treasury | 0.4 | 0.0 |
Global bond total returns (%)
| 1 week | YTD | |
|---|---|---|
| EM Local | 1.3 | 3.9 |
| EMD USD | 0.6 | 3.0 |
| Global Agg | 0.4 | 0.0 |
| Global Agg Ex-U.S. | 0.3 | -0.2 |
| Multiverse | 0.4 | 0.1 |
Commodities (%)
| 1 week | YTD | |
|---|---|---|
| BBG Com Ind | -2.3 | 19.9 |
| Oil (WTI) | -5.6 | 71.2 |
| Gold | -2.8 | -2.9 |
Currencies (USD) (%)
| 1 week | YTD | |
|---|---|---|
| EM FX | #N/A | #N/A |
| AUD | -0.4 | 5.7 |
| CAD | -0.4 | -1.9 |
| CHF | -0.3 | -0.5 |
| EUR | 0.1 | -1.4 |
| GBP | 0.2 | -0.3 |
| JPY | 0.0 | -2.2 |
GDP
Jobs
Inflation
Ex-U.S.
Regions/countries
| GDP Growth (%) annualized | Inflation Rate (%) CPI | Unemployment Rate (%) | 10-Year Government Bond (%) | Sovereign Credit Rating | |
|---|---|---|---|---|---|
| Eurozone | 0.3 | 3.2 | 6.3 | _ | _ |
| China | 5.0 | 1.2 | 5.2 | 1.74 | A+ |
| Germany | 0.4 | 2.6 | 6.3 | 2.99 | AAA |
| Japan | 0.6 | 1.4 | 2.5 | 2.64 | A+ |
| U.K. | 1.1 | 2.8 | 5.0 | 4.83 | AA |
Fund industry overview
Total net flows: open-end funds and ETFs as of 5/31/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| U.S. Equity | -1.0 | -48.2 | 19,943.0 |
| Sector Equity | 19.2 | 116.5 | 2,069.6 |
| Allocation | -4.6 | -55.6 | 1,635.7 |
| International Equity | -14.4 | 144.5 | 6,057.4 |
| Alternative | 6.7 | 25.5 | 150.0 |
| Commodities | -0.3 | 38.0 | 391.2 |
| Taxable Bond | 98.7 | 755.9 | 6,889.1 |
| Municipal Bond | 14.9 | 100.8 | 1,064.6 |
| Total all long-term funds | 118.3 | 1,085.3 | 38,955.8 |
Leading Morningstar fund categories by monthly net flows as of 5/31/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Intermediate Core Bond | 25.2 | 180.6 | 1,684.5 |
| Technology | 19.9 | 61.4 | 859.4 |
| Large Blend | 13.8 | 204.2 | 10,620.4 |
| Ultrashort Bond | 13.5 | 96.5 | 532.4 |
| Intermediate Core-Plus Bond | 12.6 | 71.5 | 947.5 |
Lagging Morningstar fund categories by monthly net flows as of 5/31/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Trading--Leveraged Equity | -5.3 | -52.8 | 191.6 |
| Foreign Large Growth | -4.5 | -38.5 | 536.5 |
| Mid-Cap Growth | -4.2 | -44.4 | 357.3 |
| Moderate Allocation | -3.9 | -42.7 | 879.9 |
| Large Growth | -3.6 | -90.7 | 3,955.1 |
Important disclosures
Important disclosures
Unless otherwise noted, all data is from FactSet.
The data provided is for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. This does not illustrate the performance of any John Hancock fund. The information contained here is not guaranteed as to accuracy or completeness. All economic and performance information is historical and does not guarantee future results.
The Dow Jones Industrial Average is a price-weighted index comprising 30 widely traded blue chip U.S. common stocks. The NASDAQ Composite Index is a market-value-weighted index of all common stocks listed on the NASDAQ stock exchange. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The MSCI Emerging Markets Index tracks the performance of large- and mid-cap stocks in emerging markets. The Cboe Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. The Russell 1000 Growth Index tracks the performance of large-cap companies in the United States with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index tracks the performance of large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index. Total returns are calculated gross of foreign withholding tax on dividends.
The Treasury yield curve is derived from available U.S. Treasury securities trading in the market and is provided directly by the U.S. Federal Reserve. The spread measures the difference in yield between two government securities. A normal (positive) yield curve occurs when longer-term rates are higher than shorter-term rates. The opposite holds true for an inverted yield curve. Year-to-date changes in U.S. Treasury bond yields are shown in basis points (BPS). One hundred basis points equals one percent.
Oil prices are represented by West Texas Intermediate (WTI) crude oil.
The G20 countries comprise a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, and over 75% of global trade.
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