The first quarter of 2024 was marked by record-breaking growth in the market, despite facing higher interest rates on Wall Street. Investors ended 2023 on a positive note, overcoming regional banking crises and geopolitical turbulence to enter a powerful bull market. Expectations for rate cuts by the Fed were high, but were adjusted to align with the projected three cuts likely to start in June or July. The stock market saw intermittent sell-offs, but continued to rise due to strong corporate earnings and a robust labor market. The S&P 500 index is on track to climb 10% for the first three months of the year, with the Dow Jones Industrial Average and the Nasdaq Composite also seeing gains.
Throughout the first quarter of 2024, the S&P 500 logged numerous record-high closes, with the Dow and Nasdaq also reaching record highs. Some tech stocks, like Apple and Tesla, have stumbled this quarter, while others such as Alphabet, Nvidia, Meta, Microsoft, and Amazon have seen gains. The S&P 600 index, which tracks US small caps, hit a 52-week high after the Fed reiterated its forecast of three rate cuts this year. Gold prices surged to all-time highs and Bitcoin reached fresh highs after US regulators approved spot exchange-traded funds.
Looking ahead, Leslie Thompson, chief investment officer at Spectrum Wealth Management, expects the rally to continue broadening based on strong corporate earnings. Analysts predict S&P 500 earnings to grow by more than 10% for all of 2024. Historical data suggests that new highs at the beginning of the year often lead to positive annual returns. However, some market indicators, including Warren Buffett’s favorite, suggest that stocks are overvalued compared to economic performance. Investors are wary of stubborn inflation that could disrupt the Fed’s plans.
A dispute between Disney and Florida, which has been ongoing for years, has finally been settled after the two parties reached an agreement. Republican Gov. Ron DeSantis established the Central Florida Tourism District to oversee the area where Disney operates, leading to tensions between the two. The settlement ends a legal dispute that began after Disney’s CEO criticized a controversial bill, leading DeSantis to threaten Disney’s special privileges. Disney sued DeSantis and his allies for violating free speech.
The collapse of the Francis Scott Key Bridge in Baltimore is not the first deadly bridge collapse in the US, with the most notable being the collapse of the I-35W bridge in Minneapolis in 2007. The collapse of the I-35W bridge resulted in 13 deaths and nearly 150 injuries, cutting off a major transportation artery for the Twin Cities. Despite initial concerns about economic impact and traffic congestion, a new bridge was constructed in just 13 months with minimal disruption. The adaptability and quick response to the collapse minimized the economic impact of the tragedy.
