Results for: U.S. Stock Market

The U.S. stock market made a strong start to 2024, with the S&P 500 index rising 10.6% in the first quarter. This marked the index’s best first-quarter performance since 2019. The rally was driven by expectations that the Federal Reserve would cut interest rates by March 2024, but those expectations have since been halved to possibly three cuts, with June now being the anticipated start date.

While the market has remained resilient, inflation has remained a concern, leading to a resetting of the benchmark 10-year U.S. Treasury yield from below 4% to 4.2% by the end of the quarter. Bonds enjoyed the decline in rates into the end of 2023, but the resetting of rate cut expectations has taken the broad bond market down -0.8% year-to-date.

Despite the challenges, cyclical stocks, led by the energy sector, surged in March, broadening the U.S. stock market beyond the seven dominant stocks that had led the rally. However, from a size standpoint, large caps remained the preferred choice, with mid and small caps lagging.

At the end of Tuesday’s trading session, key U.S. stock indices displayed positive gains. The Dow Jones Industrial Average climbed 0.7% to reach 38,503.69, the S&P 500 increased by 1.2% to 5,070.55, and the Nasdaq rose 1.6% to 15,969.64. Among the notable gainers were Tesla Inc., Meta Platforms Inc., Enphase Energy Inc., Texas Instruments Inc., and Rivian Automotive Inc.

Canada’s main stock index, the S&P/TSX composite index, rose nearly 140 points Tuesday, led by a surge in technology stocks. The positive sentiment in the Canadian market echoed gains in U.S. stock markets, with the Nasdaq leading the rally. Market watchers anticipate strong earnings reports from tech giants like Meta, Microsoft, and Alphabet this week, contributing to the upbeat sentiment. The broader market’s performance was also influenced by a weaker-than-expected report on U.S. business activity, which raised hopes for potential interest rate cuts in the future. Investors remain data-dependent, eagerly awaiting the U.S. personal consumption expenditures (PCE) report later this week for further insights into inflation trends.