Weekly Market Recap
Week ended June 6
Market-moving news
Steady rise
The major U.S. stock indexes recorded their second positive week in a row, rising around 1% to 2% for the week. The results pushed indexes to their highest levels in more than three months, although the S&P 500 remained more than 2% shy of its record high set nearly four months ago.
Resilient labor market
Stock indexes posted the week’s biggest daily gains on Friday after an employment report modestly exceeded expectations. The economy generated 139,000 new jobs in May, above consensus expectations of around 130,000. However, initial estimates for the previous two months’ gains were revised downward by a total of 95,000. The unemployment rate held steady at 4.2%.
Rate cut outlook
Bond market trading that followed Friday’s jobs report continued to support expectations that the U.S. Federal Reserve is unlikely to cut interest rates at its meeting ending June 18 or at a subsequent late July session. Prices in interest rate futures markets implied that most investors were expecting two quarter-point rate cuts by year end, with the first cut not expected until September, according to CME Group’s FedWatch tool.
Crude awakening
The price of U.S. crude oil surged more than 6% as the commodity climbed to its highest price in six weeks. The gain offset modest price declines for oil over the previous two weeks.
Lagging sectors
Despite U.S. stocks’ positive week overall, two sectors normally regarded as defensive segments of the market finished in negative territory. Stocks in the S&P 500’s consumer staples and utilities sectors were down 1.5% and 1.0% respectively—worst among the index’s 11 sectors.
Market calm returns
An index that measures investors’ expectations of short-term U.S. stock market volatility fell for the eighth week out of the past nine. On Friday afternoon, the Cboe Volatility Index fell to a level of 16.8, down from 18.6 at the end of the previous week and far below a recent peak of 52.3 on April 8.
Small-cap gain
.An index that tracks U.S. small-cap stocks outperformed its large-cap counterpart by a wide margin during the week, although small caps continued to lag larger stocks on a year-to-date basis. The small-cap index was up 3.2% for the week versus a 1.6% gain for its large-cap peer.
CPI ahead
A Consumer Price Index report scheduled for release on Wednesday will show whether a recent trend of moderating inflation extended into May despite elevated tariffs and global trade tensions. Last month’s CPI report showed an annual rate of 2.3% in April, down from 2.4% the previous month. Excluding volatile energy and food prices, core inflation was unchanged at 2.8% in April relative to March.
The week ahead: June 9-13
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Investment returns
Equities
U.S. equity size and style total returns as of 6/6/25 (%)
1 week
| 1.1 | 1.6 | 2.0 | Large | |
| 1.4 | 1.6 | 2.1 | Medium | |
| 2.4 | 3.2 | 4.0 | Small | |
| Value | Core | Growth | ||
YTD
| 3.6 | 2.6 | 1.7 | Large | |
| 1.0 | 2.7 | 7.4 | Medium | |
| -5.5 | -3.8 | -2.3 | Small | |
| Value | Core | Growth | ||
Index/market total returns as of 6/6/25 (%)
| Close | 1 week | YTD | |
|---|---|---|---|
| Dow Jones Industrial Average | 42,762.9 | 1.2 | 1.3 |
| NASDAQ Composite Index | 19,530.0 | 2.2 | 1.4 |
| S&P 500 Index | 6,000.4 | 1.5 | 2.6 |
| MSCI EAFE Index | 2,618.7 | 0.7 | 18.2 |
| Cboe Volatility Index | 16.8 | -9.7 | -3.4 |
International/developed (%)
| 1 week | YTD | |
|---|---|---|
| EAFE | 0.7 | 18.2 |
| Europe | 1.4 | 22.8 |
| France | 1.0 | 19.5 |
| Germany | 1.5 | 34.1 |
| Italy | 1.3 | 34.7 |
| Japan | -1.8 | 8.1 |
| Spain | 1.0 | 41.5 |
| Switzerland | 0.9 | 21.0 |
| U.K. | 1.1 | 18.9 |
Emerging markets (%)
| 1 week | YTD | |
|---|---|---|
| EM | 2.3 | 11.4 |
| Brazil | 1.6 | 21.9 |
| China | 2.5 | 16.0 |
| India | 1.4 | 4.4 |
| Indonesia | -2.6 | -0.8 |
| Korea | 6.5 | 26.4 |
| Mexico | 1.5 | 30.2 |
| Russia | #N/A | #N/A |
| Taiwan | 2.2 | 3.0 |
S&P 500 sectors (%)
| 1 week | YTD | |
|---|---|---|
| S&P 500 Index | 1.5 | 2.6 |
| Communication services | 3.2 | 6.9 |
| Consumer discretionary | -0.5 | -6.5 |
| Consumer staples | -1.5 | 6.8 |
| Energy | 2.2 | -1.8 |
| Financials | 0.7 | 6.6 |
| Healthcare | 1.3 | -1.9 |
| Industrials | 1.4 | 10.4 |
| Information tech | 3.0 | 1.4 |
| Materials | 1.6 | 5.3 |
| Real estate | 0.0 | 3.7 |
| Utilities | -1.0 | 8.0 |
Fixed income, currencies, and commodities
U.S. fixed-income style total returns as of 6/6/25 (%)
1 week
| 0.0 | -0.5 | -0.8 | High | Credit quality |
| -0.2 | -0.4 | 0.1 | Medium | |
| 0.0 | 0.3 | 0.2 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
YTD
| 1.8 | 2.5 | -0.2 | High | Credit quality |
| 2.0 | 2.4 | 0.7 | Medium | |
| 3.1 | 3.0 | 1.6 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
U.S. Treasury bond yields as of 6/6/25 (%)
| END OF WEEK | PRIOR YEAR END | YTD CHANGE (BPS) | |
|---|---|---|---|
| 2 Yr | 4.04 | 4.23 | -19 |
| 10 Yr | 4.50 | 4.57 | -7 |
| 30 Yr | 4.96 | 4.79 | 17 |
| 2-10 spread | 47 | 34 | -3 |
| 10-30 spread | 46 | 22 | -6 |
U.S. bond sector total returns (%)
| 1 week | YTD | |
|---|---|---|
| Aggregate | -0.4 | 2.0 |
| Bank loans | 0.2 | 2.3 |
| Convertible | 1.7 | 4.6 |
| Corporate | -0.4 | 2.7 |
| High yield | 0.3 | 3.0 |
| MBS | -0.5 | 1.9 |
| Municipal | -0.1 | -1.0 |
| Preferreds | 0.2 | -1.7 |
| TIPS | -0.8 | 2.8 |
| Treasury | -0.5 | 2.0 |
Global bond total returns (%)
| 1 week | YTD | |
|---|---|---|
| EM Local | 0.8 | 11.5 |
| EMD USD | 0.5 | 3.6 |
| Global Agg | -0.1 | 5.2 |
| Global Agg Ex-U.S. | 0.2 | 7.3 |
| Multiverse | 0.0 | 5.2 |
Commodities (%)
| 1 week | YTD | |
|---|---|---|
| BBG Com Ind | 3.4 | 6.6 |
| Oil (WTI) | 6.3 | -5.6 |
| Gold | 1.0 | 25.5 |
Currencies (USD) (%)
| 1 week | YTD | |
|---|---|---|
| EM FX | 1.1 | 8.4 |
| AUD | 0.8 | 4.8 |
| CAD | 0.4 | 5.1 |
| CHF | -0.2 | 10.1 |
| EUR | 0.3 | 10.0 |
| GBP | 0.3 | 8.0 |
| JPY | -0.4 | 8.4 |
GDP
Jobs
Inflation
Ex-U.S.
Regions/countries
| GDP Growth (%) annualized | Inflation Rate (%) CPI | Unemployment Rate (%) | 10-Year Government Bond (%) | Sovereign Credit Rating | |
|---|---|---|---|---|---|
| Eurozone | 1.5 | 1.9 | 6.2 | _ | _ |
| China | 5.4 | -0.1 | 5.1 | 1.70 | A+ |
| Germany | 0.0 | 2.1 | 6.3 | 2.56 | AAA |
| Japan | 1.7 | 3.6 | 2.5 | 1.46 | A+ |
| U.K. | 1.3 | 3.5 | 4.5 | 4.65 | AA |
Fund industry overview
Total net flows: open-end funds and ETFs as of 4/30/25 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| U.S. Equity | 18.1 | 210.1 | 15,061.1 |
| Sector Equity | -16.6 | -36.0 | 1,334.3 |
| Allocation | -9.2 | -79.2 | 1,390.2 |
| International Equity | -8.1 | -23.8 | 4,376.6 |
| Alternative | 3.9 | 41.0 | 224.1 |
| Commodities | 4.2 | 21.1 | 237.0 |
| Taxable Bond | -42.9 | 398.7 | 5,888.5 |
| Municipal Bond | -5.9 | 41.9 | 929.9 |
| Total all long-term funds | -41.2 | 614.3 | 29,821.2 |
Leading Morningstar fund categories by monthly net flows as of 4/30/25 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Large Blend | 35.6 | 288.4 | 8,040.0 |
| Ultrashort Bond | 17.0 | 104.6 | 451.2 |
| Trading--Leveraged Equity | 8.6 | 18.9 | 93.7 |
| Foreign Large Blend | 4.7 | 60.9 | 1,813.2 |
| Short-Term Bond | 4.2 | 8.6 | 527.1 |
Lagging Morningstar fund categories by monthly net flows as of 4/30/25 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Intermediate Core Bond | -22.0 | 72.1 | 1,467.7 |
| High Yield Bond | -11.1 | 22.4 | 360.6 |
| Bank Loan | -10.1 | -3.7 | 95.0 |
| Intermediate Core-Plus Bond | -9.4 | 34.0 | 843.7 |
| Long Government | -6.2 | 16.0 | 171.4 |
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.
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