NEW YORK, March 28 — Wall Street edged higher today in thin trading ahead of Easter break, while investors awaited data to gauge the Federal Reserve’s policy path on the last business day of a strong first quarter.
The three main US indexes were set for robust quarterly gains, as an AI-fuelled rally and optimism around the Fed’s rate cuts helped lift Wall Street to record highs this month.
The blue-chip Dow rose marginally in early trading and remained on track to cross the 40,000 level for the first time.
“The stock market performed extremely well during the first quarter of 2024, and as long as earnings remain strong, the market can continue to move higher,” said Jeremy Straub, CEO and chief investment officer at Coastal Wealth.
“First-quarter earnings season is likely to be the next driver of market sentiment, which right now remains very optimistic.”
Data today showed the US economy grew faster than previously estimated in the fourth quarter, while a separate report showed initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 210,000 for the week ended March 23.
Heading into the long weekend, focus will also be on the Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred inflation gauge, which is due on Good Friday, when the US stock market will be shut.
Overnight, Fed Governor Christopher Waller said recent disappointing inflation data affirms the case for the central bank to hold off on cutting its short-term interest rate target, but did not rule out trimming rates later in the year.
Traders see a 64 per cent chance the Fed will begin its easing cycle in June, according to the CME FedWatch tool.
At 10.03am ET, the Dow Jones Industrial Average was up 25.28 points, or 0.06 per cent, at 39,785.36, the S&P 500 was up 6.02 points, or 0.11 per cent, at 5,254.51, and the Nasdaq Composite was up 10.75 points, or 0.07 per cent, at 16,410.27.
Most megacap growth stocks slipped, weighing on the tech-heavy Nasdaq.
Chipmaker Nvidia struggled for direction after falling more than 2 per cent in each of the last two sessions. The AI winner is still set for more than 80 per cent gains this quarter.
The Philadelphia Semiconductor Index inched up and was on track to end its second straight quarter of double-digit gains, up over 17 per cent so far.
Two of the 11 major S&P 500 sectors declined, with communication services slipping. The rate-sensitive sector has been the best performer so far this quarter, along with technology stocks
Cryptocurrency and blockchain-related companies advanced as bitcoin recovered after a two-day slide. Exchange operator Coinbase Global, software company MicroStrategy and crypto miner Riot Platforms rose nearly 2 per cent each.
Advancing issues outnumbered decliners by a 2.62-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.
The S&P index recorded 72 new 52-week highs and no new lows, while the Nasdaq recorded 82 new highs and 20 new lows. — Reuters
