Wall Street closed the week with slight increases, although it marked its best first quarter in 5 years

The index S&P 500 closed the week with modest gains this Thursday and he registered his Strongest first quarter in five yearsas investors digest a new batch of economic data while awaiting the next inflation reading.

All three major US indices posted strong quarterly gains, led by a rise of more than 10% in the S&P 500with the rally fueled by artificial intelligence and optimism around the Fed’s rate cuts this year.

The dynamics of indices on Wall Street

According to preliminary data, the S&P 500 gained 6.81 points, or 0.13%, to 5,255.30 units; he Dow Jones Industrial Average rose 36.16 points, 0.09%, to 39,796.24; and the Nasdaq Composite lost 20.06 pointsor 0.12%, to stand at 16,379.46 units.

The index Dow Jones was less than 1% away from exceeding the 40,000 point barrier for the first time. Data on Thursday showed the U.S. economy grew faster than estimated in the fourth quarter, while initial claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 210,000 in the week ended March 23.

The economy is in pretty good shape.“The consumer is in pretty good shape and still spending, unemployment remains low,” said George Young, portfolio manager at Villere & Company in New Orleans.

“There are still areas whereThe economy is booming and you can’t get the right workers, or the right parts. So, there is money that we want to spend in different ways,” he noted.

The signs of the US economy

“The stock market performed extremely well during the first quarter of 2024, and as long as earnings remain strong, the market can continue to rise,” said Jeremy Straub, CEO and chief investment officer of Coastal Wealth.

Data from Thursday showed that The US economy grew faster than estimated in the fourth quarter, while initial claims for state unemployment benefits fell by 2,000 to a seasonally adjusted level of 210,000 in the week ended March 23.

Looking ahead to the long weekend, attention will also focus on the Personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, to be released on Good Friday, when the US stock market will remain closed.

On the eve, Fed Governor Christopher Waller said recent disappointing inflation data confirms the need for the central bank to refrain from cutting its short-term interest rate.but did not rule out the possibility of lowering them later this year.

While communication, energy and technology services were the best performers among the 11 major sectors this quarter, only the real estate sector suffered a decline.