In five years, the US stock market was on course for its best first quarter.
SP 500 – Daily Chart
The SP500 dropped 0.11% on Thursday and may show some signs of exhaustion from the recent rally.
Stocks were lower on Thursday following jobs and GDP data for the US economy. However, each of the major indices was on track for solid quarters. The S&P 500 has gained over 10% year-to-date and should have its best quarter since 2019. The Dow and Nasdaq have climbed 5.5% and 11% in the same period. All three are also looking to capture their fifth consecutive month of gains.
Meanwhile, weekly jobless claims were lower than expected for the week ending March 16, with initial filings for unemployment hitting 210,000. Dow Jones economists had forecast 211,000. The US Department of Commerce also reported that GDP increased by a revised estimate of 3.4% year-over-year in the fourth quarter of 2023.
Investors are now looking ahead to Friday’s inflation data to gauge the Federal Reserve’s next move on interest rates.
“As long as Friday’s PCE comes in at or near expectations, the Federal Reserve is likely to still cut interest rates three times in 2024, and that expectation likely won’t be derailed by any one inflation report,” Jeremy Straub at Coastal Wealth said.
Meanwhile, Donald Trump’s social media company has soared in two trading days. On its second day of trading, the company saw its value rise as much as $1.4 billion, hitting a market cap of $9.7 billion, with shares up 38% over the week.
According to recent closing prices, Trump Media’s listing could bring a windfall of $4.6bn. However, Trump Media has struggled since launching Truth Social in February 2022. The firm lost $49m in the first nine months of last year, bringing in just $3.4m in revenue.
The move higher comes after a similar strength in fellow social media firm Reddit, bringing fears of a return of meme stock valuations.
