The stock market saw a positive trend this holiday-shortened week, with the S&P 500 and the Dow Jones Industrial Average making gains while the Nasdaq Composite experienced a slight pullback. This shift in demand for stocks outside of the mega-caps with exposure to generative AI technology indicates a broadening interest in the market.
The first quarter of the year saw significant growth, with the S&P 500 rising roughly 10%, its best first-quarter gain since 2019. The Dow also notched a 5.6% return, while the Nasdaq increased by 9.1%. March marked the fifth consecutive month of gains for all three major averages.
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.
As we look ahead to next week, the focus will be on macroeconomic updates, as the first quarter earnings season comes to a close. The key events to watch include the March nonfarm payrolls report on Friday, which is closely monitored for its impact on unemployment and wage inflation. Additionally, manufacturing updates and earnings reports from companies like Paychex, Cal-Maine Foods, and Levi Strauss will provide further insights into the state of the economy.
Overall, the market continues to show signs of strength and resilience, with investors closely monitoring economic data and corporate earnings to gauge the health of the economy. Stay tuned for more updates as we navigate through the ever-changing landscape of the financial markets.
