U.S. Stocks Hit Record Highs as Investors Cheer Strong Performances from Merck, Cintas, and Trump Media
In a dramatic turnaround, U.S. stocks surged to record highs on Wednesday, breaking out of a three-day lull that had left investors on edge. The S&P 500 climbed 0.9% to 5,248.49, marking its first gain since setting its last all-time high just days ago. The Dow Jones Industrial Average also saw a significant jump, rising 1.2% to 39,760.08, while the Nasdaq composite gained 0.5% to 16,399.52, falling just short of its own record.
Merck, a pharmaceutical company, saw a 5% increase in its stock price after receiving approval from federal regulators for its treatment for pulmonary arterial hypertension. This rare disease affects the blood vessels in the lungs, causing them to thicken and narrow. Cintas, a provider of work uniforms and office supplies, also contributed to the S&P 500’s upward momentum with an 8.2% jump in its stock price after reporting stronger-than-expected profits for the latest quarter.
Meanwhile, shares of Trump Media & Technology Group continued their volatile ride, soaring 14.2% higher. The company, which operates the Truth Social platform, has been propelled by fervent supporters of former President Donald Trump, despite criticism that its valuation is irrational.
On the flip side, Nvidia, a leading technology company, experienced a 2.5% decline in its stock price, marking its second consecutive loss after a stellar performance earlier in the year. GameStop, the original meme stock, also took a hit, tumbling 15% following a mixed earnings report.
In the bond market, Treasury yields dipped slightly, with the 10-year Treasury yield falling to 4.19% from 4.23% the previous day. Investors are eagerly awaiting Friday’s release of the latest consumer spending data, which will include the Fed’s preferred measure of inflation and could impact future interest rate decisions.
As the first quarter comes to a close, the S&P 500 is poised for its fifth consecutive winning month, driven by a resilient U.S. economy and expectations of interest rate cuts by the Federal Reserve. However, concerns remain about the need for sustained profit growth to justify current stock prices and the challenges of managing inflation.
Overall, the outlook for the stock market remains positive, with expectations of continued growth supported by potential interest rate cuts and easing monetary policies from central banks around the world.
