Shashwat Chauhan and Bansari Mayur Kamdar
(Reuters) – Wall Street rose on Thursday in weak trading ahead of the Easter holiday as investors awaited data to gauge the Federal Reserve’s policy stance on the final business day of a strong first quarter.
The three major U.S. indexes were set for strong quarterly growth as an artificial intelligence-fueled rally and optimism around Fed rate cuts helped lift Wall Street to record highs this month.
The Dow Jones Industrial Average (blue chips) rose slightly in early trading and was able to cross the 40,000 level for the first time.
“The stock market performed very well in the first quarter of 2024, and as long as earnings remain strong, the market can continue to rise,” said Jeremy Straub, CEO and chief investment officer of Coastal Wealth.
“The first quarter earnings season is likely to be the next driver of market sentiment, which remains very optimistic right now.”
Data on Thursday showed the U.S. economy grew faster than previously expected in the fourth quarter, while a separate report showed initial claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 210,000 for the week ended March 23 .
Ahead of the long weekend, attention will also be focused on the Personal Consumer Expenditures (PCE) price index, the Fed’s preferred inflation gauge, due on Good Friday when the US stock market closes.
Late in the evening, Fed Chairman Christopher Waller said recent disappointing inflation data confirmed the central bank should hold off on cutting its short-term interest rate target, but did not rule out the possibility of cutting rates later this year.
According to CME’s FedWatch tool, traders see a 64% chance that the Fed will begin a rate easing cycle in June.
At 10:03 a.m. ET, shares were up 25.28 points, or 0.06%, at 39,785.36, up 6.02 points, or 0.11%, at 5,254.51 and up 10.75 points. , or 0.07%, to 16,410.27.
Most mega-cap growth stocks fell, weighing on the tech-heavy Nasdaq.
Shares of chip maker Nvidia (NASDAQ:) struggled to maintain direction after falling more than 2% in each of the last two sessions. Winner AI still expects growth of over 80% this quarter.
The Philadelphia Semiconductor Index has been slowly rising and was on track to complete its second straight quarter of double-digit growth, up more than 17% so far.
Two of the 11 major sectors of the S&P 500 index fell, while demand for telecommunications services fell. The interest rate-sensitive sector was the best performer this quarter, along with technology stocks.
Cryptocurrency and blockchain-related companies advanced as Bitcoin recovered from a two-day decline. Shares of exchange operator Coinbase (NASDAQ:) Global, software company MicroStrategy and crypto miner Riot Platforms (NASDAQ:) rose nearly 2% each.
Advancing issues outnumbered declining ones by a 2.62-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.
The S&P recorded 72 new 52-week highs and no new lows, while the Nasdaq recorded 82 new highs and 20 new lows.