Key Indicators of US Economic Activity Expand at A Strong Pace – US Market Wrap

A stellar quarter for stocks ended on a positive note, with speculation that the Federal Reserve will be able to achieve a soft landing, allowing Corporate America to continue to thrive.

Wall Street traders sent the S&P 500 to its 22nd record this year after data showed the economy is in good shape, offsetting the latest Fedspeak, which reinforced bets officials will not be in a hurry to cut interest rates. A $4 trillion increase in US equity values in just three months has surprised doomsayers, leaving a slew of Wall Street strategists scrambling to update their 2024 targets.

Stocks edged higher Thursday after struggling for direction for most of the session, as investors digested Fed Governor Christopher Waller’s remarks that he’d like to see “at least a couple months of better inflation data” before cutting interest rates. Traders were also hesitant to make large bets ahead of the Fed’s preferred inflation gauge and Jerome Powell’s remarks on Friday, when markets would be closed.

The S&P 500 rose to 5,254.35 to finish the first quarter with a gain of more than 10%. Since 1950, only five times has the equity benchmark seen double-digit gains for two quarters in a row.

The two-year yield rose five basis points to 4.62%. The bond market closes at 2 p.m, New York time. The dollar experienced a quarterly gain.