U.S. stocks are holding steady as Wall Street closes out another winning month and quarter. The S&P 500 was virtually flat in early trading after reaching an all-time high the day before, following a 10% increase in the first three months of the year. The Dow Jones Industrial Average was up slightly, while the Nasdaq composite was slightly lower, both near their record levels. The stock market has been on a strong run since late October, with the S&P 500 heading for its fifth consecutive winning month, driven by a solid U.S. economy despite high interest rates aimed at controlling inflation. The Federal Reserve has indicated potential interest rate cuts later in the year as inflation cools.
Thursday may see some shaky conditions in financial markets as mutual funds and other institutional investors make their final moves for the first quarter. The bond market will close early in the afternoon, with both the bond market and U.S. stock market closed on Friday for Good Friday. Treasury yields rose following positive reports on the economy, including stronger growth in the final quarter of last year and fewer unemployment benefit claims. The yield on the 10-year Treasury rose to 4.22% and the yield on the two-year Treasury rose to 4.61%.
In individual stock news, RH saw a 10.5% jump despite reporting weaker profit and revenue than expected, with indications of increasing demand and a revenue forecast slightly above analysts’ expectations. Investors are eyeing signs of a housing market recovery, with expectations of lower interest and mortgage rates later in the year. Chemours, on the other hand, fell 12.2% despite reporting better results for the quarter, citing weaknesses in its internal control over financial reporting following internal reviews of accounting issues. Overseas, Tokyo’s Nikkei 225 slumped 1.5% amid speculation about Japanese officials supporting the value of the yen, while movements were more modest in other Asian and European markets.
Overall, the U.S. stock market is maintaining its momentum as it closes out another strong month and quarter. Despite potential shaky conditions on Thursday as investors make final moves for the first quarter, positive economic reports and indications of a solid job market are driving market optimism. With the bond market closing early and both markets closed on Friday for Good Friday, investors are closely watching for any signs of a housing market recovery and potential interest rate cuts later in the year. Overseas markets, particularly in Asia and Europe, saw mixed movements, reflecting global economic uncertainties.
