American stocks closed today’s trading without significant changes, but they strengthened significantly for the entire first quarter. The Dow Jones index, which includes shares of thirty leading American companies, gained 0.12 percent today and ended trading at 39,807.37 points. The broader S&P 500 index rose 0.11 percent to 5,254.35 points, while the Nasdaq Composite index, which includes many companies from the advanced technology sector, fell 0.12 percent to 16,379.46 points.
Strong Performance of US Stock Market
For the entire first quarter, the S&P 500 index gained more than ten percent. It thus recorded the most significant quarterly increase since 2019, the Reuters agency wrote. The Dow rose nearly six percent in the first quarter, and the Nasdaq gained more than nine percent.
US stocks have recently benefited from the prospect of an impending rate cut in the United States and investor optimism about the development of artificial intelligence. “The economy is in pretty good shape, consumers are in pretty good shape and still spending, unemployment remains low,” said Villere & Company analyst George Young.
Market Awaits US Economic Data Amid Rate Speculation
Investors are now waiting for new data on the economy, which could give them a better idea of the future development of interest rates. Financial markets in the US will be closed on Friday, but the US Department of Commerce will publish data on the February development of the price index of personal consumption expenditures in the United States. This index is the preferred inflation indicator for the US Central Bank (Fed).
In the foreign exchange market today, the US dollar strengthened against the euro after a Fed official said there was no reason to rush to cut interest rates in the US. The single European currency fell to a five-week low of $1.0775 during the day. Shortly after 21:00 CET, it was down about 0.4 percent and hovering close to $1.0785
Fed Plans Rate Cuts Despite High Inflation
Fed Board member Christopher Waller said on Wednesday evening that disappointing data on inflation in the United States confirms that the Fed is doing the right thing by keeping interest rates at their current high levels for the time being.
Last week, the Fed was expected to keep its key interest rate in a range of 5.25 to 5.50 percent, the highest level in 22 years. However, he confirmed that this year he expects to reduce the base rate three times, by a total of 0.75 percentage points.
Source: čtk
