US stocks traded flat on Thursday as investors digested the latest economic data and looked ahead to Friday’s inflation report. The S&P 500 is on track to have its best quarter since 2019, with a year-to-date gain of 10.66%. The Dow and Nasdaq have also seen strong gains, climbing 5.5% and 11% respectively.
Weekly jobless claims came in lower than expected, with initial filings for unemployment hitting 210,000, slightly below the forecast of 211,000. The US Department of Commerce also reported that the real gross domestic product increased by a revised estimate of 3.4% year-over-year in the fourth quarter of 2023.
Investors are eagerly awaiting Friday’s inflation data for clues on the Federal Reserve’s next move. Despite the strong economic data, some analysts believe the Fed will still cut interest rates three times in 2024.
“As long as Friday’s PCE comes in at or near expectations, the Federal Reserve is likely to still cut interest rates three times in 2024, and that expectation likely won’t be derailed by any one inflation report,” said Jeremy Straub, chief investment officer of Coastal Wealth.
Overall, US stocks are aiming to capture their fifth consecutive month of gains, with all three major indexes showing positive momentum. Stay tuned for more updates as the market continues to react to economic data and news developments.
