Weekly Market Recap
Week ended August 21
Market-moving news
Modest retreat
The S&P 500 and the NASDAQ fell around 1% to 2%, snapping a three-week string of gains as an unusually strong quarterly earnings season neared an end. The S&P 500 ended the week 1.6% below the record high that it set the previous week, while the NASDAQ was 3.4% shy of the historic peak it reached in early June.
High yields
Treasury bond yields rose slightly during a week when the U.S. government’s gross debt total climbed above the $40 trillion threshold for the first time. The 30-year yield ended the week at 5.27%, near its highest level in almost two decades. The 10-year yield was at 4.73%, with the 2-year yield at 4.23%.
Treasury bond buyback
U.S. Treasury Secretary Scott Bessent sought to ease longer-term borrowing costs, announcing that the U.S. Treasury would double the size of a bond buyback program starting next month to $4 billion per session from $2 billion. The move targets the 10-, 20-, and 30-year Treasury segments, where some yields recently climbed to the highest levels since 2007.
Overseas yields
With inflation pressures elevated across much of the globe, long-term government borrowing costs remain high in many of the world’s biggest economies. The yield of Japan’s 10-year bond climbed on Tuesday to its highest level in about three decades, and Germany’s 30-year yield rose to the highest level since 2011.
Bitcoin rally
The price of the most widely traded cryptocurrency surged to the highest level in three months. Bitcoin traded above $77,400 on Friday afternoon after finishing the previous week around $63,000. Even with the recent gain, Bitcoin was down more than 11% on a year-to-date basis.
Oil up again
Oil prices rose for the second week in a row, driven largely by developments in the Middle East and the Strait of Hormuz. On Friday afternoon, U.S. crude was trading around $87 per barrel, up from $82 a week earlier. Even with the latest rise, oil prices remained well below a recent peak reached on July 23, when crude briefly traded above $92.
Gold shines
The price of gold climbed for the third week in a row and on Friday reached the highest level in more than three months, with gold futures trading around $4,670 per ounce in the afternoon. As recently as mid-July, the precious metal had been trading as low as $4,000.
Fed’s summer agenda
Investors and economists will turn their attention to the Rocky Mountain town of Jackson Hole, Wyoming, where the U.S. Federal Reserve will hold its annual three-day economic policy symposium beginning Thursday, August 27. Fed Chair Kevin Warsh is among the featured speakers, with an address scheduled on Friday.
The week ahead: August 24-28
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Investment returns
Equities
U.S. equity size and style total returns as of 8/21/26 (%)
1 week
| -0.5 | -1.4 | -2.3 | Large | |
| -0.8 | -1.2 | -2.4 | Medium | |
| -1.1 | -1.6 | -2.1 | Small | |
| Value | Core | Growth | ||
YTD
| 23.3 | 13.0 | 3.8 | Large | |
| 22.9 | 18.5 | 5.3 | Medium | |
| 25.0 | 22.5 | 20.1 | Small | |
| Value | Core | Growth | ||
Index/market total returns as of 8/21/26 (%)
| Close | 1 week | YTD | |
|---|---|---|---|
| Dow Jones Industrial Average | 53,277.0 | -0.8 | 12.0 |
| NASDAQ Composite Index | 26,180.5 | -2.0 | 13.1 |
| S&P 500 Index | 7,674.4 | -1.4 | 12.9 |
| MSCI EAFE Index | 3,243.6 | -0.5 | 14.6 |
| Cboe Volatility Index | 15.1 | 5.6 | 0.7 |
International/developed (%)
| 1 week | YTD | |
|---|---|---|
| EAFE | -0.5 | 14.6 |
| Europe | 0.3 | 12.8 |
| France | -1.0 | 6.7 |
| Germany | 0.0 | 6.4 |
| Italy | -0.6 | 18.5 |
| Japan | -3.3 | 19.2 |
| Spain | -0.1 | 18.6 |
| Switzerland | 1.5 | 10.9 |
| U.K. | 1.3 | 13.3 |
Emerging markets (%)
| 1 week | YTD | |
|---|---|---|
| EM | 1.2 | 24.5 |
| Brazil | 2.8 | 11.7 |
| China | 2.9 | -6.4 |
| India | -0.7 | -8.6 |
| Indonesia | 2.6 | -31.8 |
| Korea | 2.6 | 95.8 |
| Mexico | 2.9 | 14.3 |
| Russia | #N/A | #N/A |
| Taiwan | -1.1 | 60.5 |
S&P 500 sectors (%)
| 1 week | YTD | |
|---|---|---|
| S&P 500 Index | -1.4 | 12.9 |
| Communication services | -1.4 | 0.2 |
| Consumer discretionary | -0.2 | 0.7 |
| Consumer staples | -0.9 | 10.5 |
| Energy | 2.9 | 44.0 |
| Financials | -1.2 | 5.9 |
| Healthcare | 4.3 | 13.8 |
| Industrials | -3.4 | 16.9 |
| Information tech | -3.2 | 20.4 |
| Materials | 2.3 | 18.1 |
| Real estate | -0.4 | 17.4 |
| Utilities | -3.5 | 1.6 |
Fixed income, currencies, and commodities
U.S. fixed-income style total returns as of 8/21/26 (%)
1 week
| 0.0 | -0.1 | 0.0 | High | Credit quality |
| 0.0 | -0.1 | -0.2 | Medium | |
| -0.1 | -0.1 | -0.5 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
YTD
| 1.8 | 0.2 | -3.2 | High | Credit quality |
| 1.2 | 0.2 | -2.2 | Medium | |
| 2.3 | 2.4 | 2.3 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
U.S. Treasury bond yields as of 8/21/26 (%)
| END OF WEEK | PRIOR YEAR END | YTD CHANGE (BPS) | |
|---|---|---|---|
| 2 Yr | 4.23 | 3.48 | 75 |
| 10 Yr | 4.73 | 4.16 | 57 |
| 30 Yr | 5.27 | 4.84 | 43 |
| 2-10 spread | 50 | 68 | -18 |
| 10-30 spread | 54 | 68 | -14 |
U.S. bond sector total returns (%)
| 1 week | YTD | |
|---|---|---|
| Aggregate | -0.1 | -0.3 |
| Bank loans | 0.2 | 2.0 |
| Convertible | -2.8 | 17.5 |
| Corporate | -0.3 | -0.9 |
| High yield | -0.1 | 2.4 |
| MBS | -0.1 | 0.1 |
| Municipal | -0.6 | 0.6 |
| Preferreds | -1.2 | -3.6 |
| TIPS | 0.1 | 0.7 |
| Treasury | -0.1 | -0.5 |
Global bond total returns (%)
| 1 week | YTD | |
|---|---|---|
| EM Local | 0.6 | 5.1 |
| EMD USD | -0.4 | 2.5 |
| Global Agg | 0.2 | 0.0 |
| Global Agg Ex-U.S. | 0.4 | 0.2 |
| Multiverse | 0.2 | 0.1 |
Commodities (%)
| 1 week | YTD | |
|---|---|---|
| BBG Com Ind | 3.8 | 31.1 |
| Oil (WTI) | 6.4 | 85.3 |
| Gold | 5.6 | 6.4 |
Currencies (USD) (%)
| 1 week | YTD | |
|---|---|---|
| EM FX | #N/A | #N/A |
| AUD | 1.0 | 7.4 |
| CAD | 0.8 | -0.5 |
| CHF | 1.3 | -1.1 |
| EUR | 0.8 | -0.6 |
| GBP | 0.6 | 1.3 |
| JPY | 0.1 | -1.4 |
GDP
Jobs
Inflation
Ex-U.S.
Regions/countries
| GDP Growth (%) annualized | Inflation Rate (%) CPI | Unemployment Rate (%) | 10-Year Government Bond (%) | |
|---|---|---|---|---|
| Eurozone | 1.0 | 2.9 | 6.3 | _ |
| China | 4.3 | 0.5 | 5.2 | 1.70 |
| Germany | 0.9 | 2.8 | 6.4 | 3.26 |
| Japan | 0.7 | 1.9 | 2.5 | 2.87 |
| U.K. | 1.2 | 2.9 | 4.9 | 5.06 |
Fund industry overview
Total net flows: open-end funds and ETFs as of 6/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| U.S. Equity | 25.0 | 45.2 | 19,843.1 |
| Taxable Bond | 58.0 | 780.6 | 6,954.9 |
| International Equity | 10.7 | 122.2 | 6,001.0 |
| Sector Equity | 24.6 | 147.4 | 2,044.9 |
| Allocation | -5.6 | -58.8 | 1,624.4 |
| Municipal Bond | 7.9 | 106.7 | 1,072.5 |
| Nontraditional Equity | 8.4 | 56.5 | 372.7 |
| Commodities | 1.9 | 26.0 | 344.7 |
| Miscellaneous | 6.7 | -14.4 | 273.9 |
| Alternative | 3.3 | 31.4 | 158.9 |
| N/A | -0.7 | -34.3 | 54.2 |
| Total all long-term funds | 108.0 | 1,208.4 | 38,745.2 |
Leading Morningstar fund categories by monthly net flows as of 6/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Large Blend | 37.8 | 295.1 | 10,632.1 |
| Technology | 19.1 | 92.5 | 822.0 |
| Ultrashort Bond | 14.9 | 115.1 | 560.4 |
| Intermediate Core Bond | 10.1 | 168.2 | 1,689.4 |
| Foreign Large Blend | 7.9 | 111.8 | 2,554.1 |
Lagging Morningstar fund categories by monthly net flows as of 6/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Large Growth | -19.6 | -108.2 | 3,717.0 |
| Foreign Large Growth | -19.3 | -54.5 | 512.1 |
| Large Value | -6.2 | -289.4 | 2,569.2 |
| Mid-Cap Growth | -5.0 | -48.1 | 341.4 |
| Moderate Allocation | -4.0 | -44.9 | 866.6 |
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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