Today, the stock market in the United States is relatively stable as Wall Street approaches the end of another successful month and quarter.
The S&P 500, which hit an all-time high yesterday, is up 0.1% in afternoon trading. It has surged approximately 10% in the first three months of this year, making it one of the best-performing quarters in the last two years.
The Dow Jones Industrial Average has gained 27 points, or 0.1%, as of 12:20 p.m. Eastern time, and the Nasdaq composite has dipped 0.1%. Both indexes are also near their record highs.
The stock market has been on a strong upward trend since late October, with the S&P 500 heading for its fifth consecutive monthly gain. This growth has occurred despite high interest rates aimed at controlling inflation. The Federal Reserve has hinted at multiple interest rate cuts later this year as inflation is expected to cool down.
Financial markets could be volatile today as mutual funds and other large institutional investors make their final moves before closing their books for the first quarter. The bond market will close early, and both the bond and stock markets will be closed on Friday for Good Friday.
In the bond market, Treasury yields have remained stable following reports on the economy. One report indicated stronger-than-expected growth in the U.S. economy in the last quarter of 2023, while another showed a decrease in the number of Americans filing for unemployment benefits last week, highlighting a strong job market.
The yield on the 10-year Treasury remained at 4.19%, while the yield on the two-year Treasury, which is more closely tied to Fed expectations, rose to 4.61% from 4.57%.
Wall Street hopes the Federal Reserve will start cutting its main interest rate in June, but recent reports showing higher-than-expected inflation have made progress on this front more uncertain.
RH, a home décor retailer, saw its stock rise by 17.7% despite reporting weaker-than-expected profit and revenue for the latest quarter. The company indicated an upward trend in demand and provided a revenue forecast for the upcoming year slightly above analysts’ expectations.
Investors are eager for signs of recovery in the housing market, with interest and mortgage rates expected to decrease later this year.
On the other hand, Chemours’ stock fell by 8.4% despite reporting better-than-expected results for the latest quarter. The company’s forecast for earnings before taxes and other items in the current quarter was below analysts’ expectations. It also disclosed weaknesses in its internal control over financial reporting following internal reviews of accounting issues.
In overseas markets, Tokyo’s Nikkei 225 dropped by 1.5% amid speculation about potential moves by Japanese officials to support the value of the yen. Movements in other Asian and European markets were more subdued.
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