Weekly Market Recap
Week ended May 13
Market-moving news
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Stuck in a rut
The losing streak for the Dow extended to seven weeksꟷthe longest such string for that index in decadesꟷwhile the S&P 500 and NASDAQ fell for the sixth week in a row. Each index dropped around 2% to 3% and the S&P 500 retreated to its lowest level since March 2021.
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Bearish trends
The market’s recent slide put the NASDAQ in bear market territory in March, and the S&P 500 and Dow got closer to that zone with the latest week’s declines. As of Friday’s close, the S&P 500 was down more than 16% from its record high in early January and the Dow was nearly 13% lower. The NASDAQ was off almost 27% from its record set last November.
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Persistent inflation
Although April’s Consumer Price Index slipped to an 8.3% annual rate from 8.5% the previous month, there was little relief from the recent spike in inflation. Excluding typically volatile food and gasoline prices, core inflation actually rose 0.6% on a month-to-month basis, compared with a 0.3% gain in March.
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Return to bonds
Prices of U.S. government bonds mounted a modest comeback, sending the yield of the 10-year U.S. Treasury bond down to around 2.93% on Friday. That marked a big reversal from the previous week, when the 10-year yield rose to 3.13% after eclipsing the 3.00% level for the first time since November 2018.
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Crypto volatility
Prices of some of the most widely used cryptocurrencies stabilized somewhat on Friday to close out a volatile week. After concluding the previous week at around $36,00 on May 6, the price of bitcoin briefly fell below $27,000 on Thursday before climbing back to around $30,000 on Friday afternoon. As recently as April 21, the price was above $40,000.
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Powell’s second term
The U.S. Senate on Thursday voted 80 to 19 to approve a second four-year term for U.S. Federal Reserve Chair Jerome Powell. The 69-year-old was initially appointed by President Trump in 2018, and President Biden reappointed Powell this year.
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Inflation obsession
Consumers aren’t the only ones paying close attention to rising prices. As of Thursday, executives of 85% of S&P 500 companies had mentioned the term “inflation” in conference calls with analysts during the current quarterly earnings season, according to FactSet.
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Buyback record
The value of stock that companies in the S&P 500 repurchased in the 12-month period ended March 31 broke a record, according to S&P Dow Jones Indices. As of Friday, buybacks totaled $953 billion so farꟷnot all companies have reported their first-quarter buyback figuresꟷsurpassing the previous record of $882 billion set in the 12 months ended December 31, 2021.
The week ahead: May 16-20
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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 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. It is not possible to invest directly in an index. The Russell 2000 Index tracks the performance of approximately 2,000 publicly traded small-cap companies in the United States.
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.
Investment returns
Equities
U.S. equity size and style total returns as of 5/13/22 (%)
1 week
| -1.8 | -2.4 | -2.9 | Large |
| -1.9 | -2.0 | -2.1 | Medium |
| -2.8 | -2.5 | -2.1 | Small |
| Value | Core | Growth |
YTD
| -7.5 | -16.0 | -23.6 | Large |
| -9.2 | -15.5 | -26.9 | Medium |
| -12.6 | -19.8 | -27.0 | Small |
| Value | Core | Growth |
Index/market total returns as of 5/13/22 (%)
| CLOSE | WEEK | YTD | |
|---|---|---|---|
| Dow Jones Industrial Average | 32,196.7 | -2.1 | -10.8 |
| NASDAQ Composite Index | 11,805.0 | -2.8 | -24.3 |
| S&P 500 Index | 4,023.9 | -2.4 | -15.1 |
| MSCI EAFE Index | 1,942.4 | -1.4 | -15.4 |
| Cboe Volatility Index | 28.9 | -4.3 | 68.0 |
Emerging markets (%)
| 1 WEEK | YTD | |
|---|---|---|
| EM | -2.6 | -17.9 |
| Brazil | 0.9 | 13.5 |
| China | -0.4 | -23.7 |
| India | -5.4 | -13.1 |
| Indonesia | -9.3 | 3.4 |
| S. Korea | -1.8 | -19.1 |
| Mexico | 0.0 | -5.1 |
| Russia | 0.2 | -100.0 |
| Taiwan | -3.8 | -20.6 |
International/developed (%)
| 1 WEEK | YTD | |
|---|---|---|
| EAFE | -1.4 | -15.4 |
| Europe | -0.8 | -16.4 |
| France | -0.1 | -17.4 |
| Germany | 0.8 | -21.7 |
| Italy | 0.3 | -18.3 |
| Japan | -2.1 | -16.3 |
| Spain | -1.4 | -10.0 |
| Switzerland | -2.4 | -16.6 |
| U.K. | -0.5 | -5.8 |
S&P 500 sectors (%)
| 1 WEEK | YTD | |
|---|---|---|
| S&P 500 Index | -2.4 | -15.1 |
| Communication services | -0.2 | -25.0 |
| Consumer discretionary | -3.4 | -26.1 |
| Consumer staples | 0.3 | 0.5 |
| Energy | -2.6 | 46.9 |
| Financials | -3.5 | -13.8 |
| Healthcare | -0.9 | -8.4 |
| Industrials | -2.5 | -11.7 |
| Information tech | -3.5 | -22.0 |
| Materials | -2.4 | -8.6 |
| Real estate | -3.9 | -16.3 |
| Utilities | -1.1 | 0.5 |
Fixed income, currencies, and commodities
U.S. fixed-income style total returns as of 5/13/22 (%)
1 week
| 0.1 | 0.7 | 1.9 | High | Credit quality |
| 0.3 | 0.8 | 0.7 | ||
| -0.5 | -1.1 | -1.0 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
YTD
| -1.2 | -5.5 | -20.5 | High | Credit quality |
| -2.7 | -6.9 | -21.8 | Medium | |
| -3.6 | -10.2 | -19.6 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
U.S. Treasury bond yields as of 5/13/22 (%)
| END OF WEEK | PRIOR YEAR END | YTD CHANGE (BPS) | |
|---|---|---|---|
| 2 Yr | 2.59 | 0.73 | 186 |
| 10 Yr | 2.93 | 1.51 | 142 |
| 30 Yr | 3.09 | 1.90 | 119 |
| 2-10 spread | 0.34 | 0.79 | -45 |
| 10-30 spread | 0.16 | 0.39 | -23 |
Global bond total returns (%)
| 1 WEEK | YTD | |
|---|---|---|
| EM Local | -1.2 | -19.8 |
| EMD USD | -0.4 | -16.7 |
| Global Agg | 0.3 | -12.2 |
| Global Agg Ex-U.S. | -0.1 | -13.6 |
| Multiverse | 0.2 | -12.1 |
Commodities (%)
| 1 WEEK | YTD | |
|---|---|---|
| BBG Com Ind | -1.5 | 29.6 |
| Oil (WTI) | 0.3 | 51.8 |
| Gold | -4.0 | -1.3 |
U.S. bond sector total returns (%)
| 1 WEEK | YTD | |
|---|---|---|
| Aggregate | 0.9 | -9.7 |
| Bank loans | -1.7 | -3.3 |
| Convertible | -5.2 | -19.0 |
| Corporate | 0.8 | -13.2 |
| High yield | -1.1 | -10.2 |
| MBS | 1.2 | -8.1 |
| Municipal | -0.7 | -10.1 |
| Preferreds | 0.9 | -16.7 |
| TIPS | 0.4 | -6.3 |
| Treasury | 0.9 | -8.8 |
Currencies (USD) (%)
| 1 WEEK | YTD | |
|---|---|---|
| EM FX | -1.1 | -3.1 |
| AUD | -2.7 | -4.9 |
| CAD | -0.5 | -2.4 |
| CHF | -1.7 | -9.1 |
| EUR | -1.8 | -8.6 |
| GBP | -1.1 | -9.8 |
| JPY | 0.8 | -11.0 |
GDP
Jobs
Inflation
Ex-U.S.
Regions/countries
| GDP Growth (%) annualized | Inflation Rate (%) CPI | Unemployment Rate (%) | 10-Year Government Bond (%) | Sovereign Credit Rating | |
| Eurozone | 5.0 | 7.5 | 6.8 | _ | _ |
| China | 4.8 | 2.1 | 5.8 | 2.82 | A+ |
| Germany | 3.7 | 7.4 | 5.0 | 0.95 | AAA |
| Japan | 0.7 | 1.2 | 2.6 | 0.25 | A+ |
| U.K. | 8.7 | 7.0 | 3.8 | 1.75 | AA |
Fund industry overview
Total net flows: open-end funds and ETFs as of 4/30/22 ($B)
| MONTH | 12 Month | ASSETS | |
| U.S. Equity | -48.3 | 69.4 | 11,316.0 |
| Sector Equity | 0.4 | 23.5 | 1,280.7 |
| Allocation | -3.6 | -15.0 | 1,371.2 |
| International Equity | -3.2 | 181.0 | 3,630.3 |
| Alternative | 3.5 | 41.2 | 156.3 |
| Commodities | 3.3 | 22.8 | 214.3 |
| Taxable Bond | -15.8 | 225.9 | 5025.7 |
| Municipal Bond | -22.4 | 18.9 | 927.4 |
| Total all long-term funds | -81.8 | 588.7 | 24,059.4 |
Leading Morningstar fund categories by monthly net flows as of 4/30/22 ($B)
| MONTH | 12 Month | ASSETS | |
| Intermediate Core Bond | 8.5 | 63.2 | 1,140.7 |
| Bank Loan | 5.3 | 50.4 | 138.4 |
| Large Value | 4.9 | 63.0 | 1,635.1 |
| Trading--Leveraged Equity | 4.0 | 11.0 | 52.1 |
| Intermediate Government | 3.8 | 0.8 | 201.2 |
Lagging Morningstar fund categories by monthly net flows as of 4/30/22 ($B)
| MONTH | 12 Month | ASSETS | |
| Large Blend | -26.9 | 120.6 | 5,426.4 |
| Large Growth | -10.6 | -64.9 | 2,118.5 |
| Intermediate Core-Plus Bond | -8.7 | -3.7 | 749.8 |
| High Yield Bond | -8.1 | -33.4 | 322.1 |
| Short-Term Bond | -7.4 | 18.8 | 583.9 |
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 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. It is not possible to invest directly in an index.
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.
