Stocks opened with little change on Thursday morning as investors braced for the final trading session of what has been the best quarter in five years for the markets.
The major indices—the S&P 500 (^GSPC), Dow Jones Industrial Average (^DJI), and Nasdaq Composite (^IXIC)—all began the day near the flatline. Wednesday saw the S&P setting its latest record close of the year, while the Dow surged by nearly 500 points, reflecting the bullish sentiment prevailing in the market.
As markets prepare to close for the Good Friday holiday, it’s worth noting the remarkable performance witnessed throughout the quarter. Both the S&P and Nasdaq have soared by approximately 10% since the beginning of the year, marking a significant milestone for Wall Street.
What initially started as a rally driven by mega-cap stocks has gradually expanded, indicating a broader market sentiment. Wall Street analysts have been continually revising their year-end price targets to keep pace with the S&P’s impressive surge, further fueling investor optimism. Historical data suggests that this momentum may persist in the coming months.
On the economic front, the latest data releases provide further support for market stability. The final reading on fourth-quarter GDP revealed that the US economy grew at a rate of 3.4%, slightly surpassing the prior estimate of 3.2%. Additionally, initial jobless claims for last week came in at 210,000, slightly below estimates of 212,000, indicating a resilient labor market.
While Wall Street will be closed on Friday for the Good Friday holiday, investors remain attentive to the main data event of the week: the Personal Consumption Expenditures (PCE) price index. This index contains the Federal Reserve’s preferred “core” PCE inflation measure and is closely monitored for insights into inflationary trends. The release of this data could provide further guidance for market participants as they navigate the evolving economic landscape.
As the markets approach the end of what has been their best quarter in five years, investors remain cautiously optimistic about the future trajectory amidst signs of broadening momentum and economic stability. With the S&P and Nasdaq reaching new heights, optimism remains high as Wall Street continues its upward trajectory.
