Investors saw gains in the S&P 500 and the Dow Jones Industrial Average this week, with the Nasdaq Composite experiencing a slight pullback. This shift in demand for stocks outside of the mega-caps with exposure to generative AI technology indicates a broader interest in the market. The positive performance of the S&P 500, which rose roughly 10% for the quarter, marks its best first-quarter gain since 2019. The Dow also saw a 5.6% return, while the Nasdaq increased by 9.1%.
Looking at economic indicators, new home sales in February were slightly lower than expected, while pending home sales exceeded expectations. The final reading on fourth-quarter GDP showed a slight increase, and the February personal spending and income report was in line with expectations. These data points support the Federal Reserve’s decision to maintain its current policy.
Looking ahead to next week, investors will be closely watching the March nonfarm payrolls report, which is a key indicator of employment and wage growth. Additionally, manufacturing updates and earnings reports from companies like Paychex, Cal-Maine Foods, and Levi Strauss will provide further insight into the state of the economy.
Overall, the market continues to show signs of strength and resilience, with investors remaining optimistic about the future. Stay tuned for more updates as we navigate through the ever-changing landscape of the financial markets.
