The first quarter of the year saw a surge in record closes for the S&P 500 index, marking the largest share of new highs since 2013. According to data from Bespoke Investment Group, nearly 39.3% of trading days in the three-month period ended with record closes, the highest percentage in nearly a decade.
The strong performance of the S&P 500 index led to a return of over 10% for the quarter, which concluded last week. This positive momentum in the stock market reflects the overall optimism and confidence in the economy.
In other news, Google’s artificial intelligence capabilities are being underestimated by the market, according to Mark Mahaney, Evercore ISI’s senior managing director. Mahaney believes that Google’s AI assets are undervalued and has set a price target of $160 for the Google parent company, implying a potential upside of 6%.
Meanwhile, the ISM manufacturing gauge exceeded expectations in March, showing expansion in the sector for the first time in 17 months. The index rose to 50.3, indicating growth in production and prices, although employment still remains in contraction territory.
Federal Reserve Chair Jerome Powell stated that recent economic data provides policymakers with room to consider interest rate cuts, but emphasized that there is no rush to implement them. Powell’s comments come as the U.S. economy shows signs of solid growth, with inflation slightly above the Fed’s target of 2%.
Overall, the stock market remains steady as the second quarter begins, with major averages posting gains in March and the first quarter. Investors are optimistic about the future, particularly as the AI sector continues to show promise and economic indicators point towards a strong recovery.
