U.S. stocks are rising Thursday following a three-day lull. The S&P 500 was 0.6% higher in early trading. It’s on track for its first gain since setting an all-time high last week on Thursday, but all its movements since then have been relatively modest.
Quick Read
- Market Uplift: The S&P 500 experienced a 0.6% rise, marking its potential first gain since achieving an all-time high the previous week. Despite recent fluctuations, the changes have remained relatively minor.
- Dow and Nasdaq Gains: The Dow Jones Industrial Average saw an increase of 0.8%, while the Nasdaq composite rose by 0.3%.
- Trump Media’s Surge: Trump Media & Technology Group’s shares soared by 18.6%, continuing a trend of significant increases driven by Donald Trump’s supporters, despite skepticism about the company’s valuation.
- Merck’s Advancement: Merck’s stock climbed 4.9% following the FDA’s approval of its Winrevair treatment for a rare pulmonary condition, signaling a positive market response.
- Robinhood’s New Launch: Robinhood Markets gained 3.5% in value after announcing its first credit card, exclusively for Gold members, alongside other new offerings.
- Carnival’s Dip: Despite reporting a smaller-than-expected quarterly loss, Carnival’s shares dropped by 3.3%.
- GameStop’s Decline: GameStop, known as the original meme stock, saw its shares fall despite surpassing quarterly expectations, highlighting the unpredictable nature of stocks popular among retail investors.
- Steady Treasury Yields: Treasury yields remained stable with minimal economic data released, with the 10-year Treasury yield slightly decreasing to 4.22%.
- Anticipation for Consumer Spending Report: The upcoming U.S. consumer spending report, including the Federal Reserve’s preferred inflation measure, is highly anticipated, potentially influencing bond and stock markets.
- Market Closure on Good Friday: With markets closed for Good Friday, trading activities may intensify on Thursday, coinciding with the end of the month and quarter.
- S&P 500’s Continued Success: The S&P 500 is on track for its fifth consecutive month of gains, supported by the resilient U.S. economy and cooling inflation.
- Calls for Profit Growth: To justify recent price increases, a broader range of companies will need to show substantial profit growth.
- Inflation and Interest Rate Outlook: While inflation has moderated from its peak, recent data have been hotter than expected. Nonetheless, traders predominantly anticipate the Federal Reserve to begin reducing interest rates by June.
- Global Market Performance: European and Asian stock markets showed mixed results, with notable declines in Chinese stocks despite the central bank governor’s optimistic statements about the property industry’s recovery.
The Associated Press has the story:
Wall Street bounces back after a three-day losing streak
Newslooks- NEW YORK (AP) —
U.S. stocks are rising Thursday following a three-day lull. The S&P 500 was 0.6% higher in early trading. It’s on track for its first gain since setting an all-time high last week on Thursday, but all its movements since then have been relatively modest.
The Dow Jones Industrial Average was up 307 points, or 0.8%, and the Nasdaq composite was 0.3% higher.
Shares of Trump Media & Technology Group are continuing their wild ride, jumping another 18.6%. The company behind the money-losing Truth Social platform has zoomed well beyond what critics say is rational, as fans of former president Donald Trump keep pushing it higher.
Merck climbed 4.9% after federal regulators approved its Winrevair treatment for adults with pulmonary arterial hypertension, a rare disease where blood vessels in the lungs thicken and narrow.
Robinhood Markets climbed 3.5% after unveiling its first credit card, which is reserved for its subscription-paying Gold members, along with other new products.
On the losing end of Wall Street was Carnival. The cruise operator fell 3.3% despite reporting a milder loss for the latest quarter than expected.
GameStop also tumbled after delivering results for the latest quarter that topped analysts’ forecasts. It’s the original meme stock, predating Trump Media by years, where its price has often moved more on the sentiment of smaller-pocketed investors rather than on fundamentals like its profit and revenue.
In the bond market, Treasury yields were relatively steady with few economic reports on the calendar to shake things up.
The yield on the 10-year Treasury edged down to 4.22% from 4.23% late Tuesday.
The week’s highlight for the bond market may be arriving Friday, when the U.S. government releases the latest monthly update on spending by U.S. consumers. It will include the measure of inflation that the Federal Reserve prefers to use as it sets interest rates.
But both the U.S. bond and stock markets will be closed that day for Good Friday. That could cause some anticipatory trades to bunch up on Thursday. It will also be the last day of the month and of the first quarter, which could further roil things.
The S&P 500 is on track for a fifth straight winning month and has been roaring higher since late October. The U.S. economy has remained remarkably resilient despite high interest rates meant to get inflation under control. Plus, the Federal Reserve looks set to start lowering interest rates this year because inflation has cooled from its peak.
But critics say a broader range of companies will need to deliver strong profit growth to justify their big moves in price. Progress on bringing inflation down has also become bumpier recently, with reports this year coming in hotter than expected.
Still, the broad expectation among traders is for the Federal Reserve to begin cutting its main interest rate in June.
In stock markets abroad, indexes were mixed across Europe and Asia.
Chinese stocks were some of the worst performers, even as China’s central bank governor told a high-level business conference in Beijing that the ailing property industry was showing signs of recovery and that the impact from defaults of dozens of developers was limited. Stocks tumbled 1.4% in Hong Kong and 1.3% in Shanghai.
