Stocks wrapped up a monster first quarter on a subdued note Thursday, with both the S&P 500 and Nasdaq posting double-digit gains in the first three months of 2024, fueled by investors’ optimism about the state of the economy.
The S&P 500 surged 10.8 percent in the first quarter, marking its strongest start to the year since 2019. The Nasdaq also saw significant gains, rising 10.9 percent during the same period. The Dow Jones Industrial Average, while not as high as the other two indexes, still managed a respectable 5.5 percent gain.
Analysts attribute the market surge to the continued strength of the economy, with consumers showing confidence by increasing their spending. Quincy Krosby, chief global strategist at LPL Financial, noted that the Dow’s performance is underscored by a solid economic landscape and strong labor market.
The Dow closed at 39,807 on Thursday, setting a new record, while the S&P 500 closed at 5,254 and the Nasdaq closed at 16,379. The market’s performance in the first quarter has been broad-based, with a variety of sectors contributing to the rally.
One notable factor behind the Dow’s strong performance was a rally in the financial sector, with companies like American Express, Travelers, Goldman Sachs, and JPMorgan all posting significant gains. This rally is supported by robust consumer spending, which has exceeded expectations.
Looking ahead, investors will be keeping a close eye on interest rates, as the Federal Reserve is expected to pursue three rate cuts in 2024. Despite some uncertainties, the overall outlook for the stock market remains positive, with analysts optimistic about the continued strength of the economy and consumer spending.
