THE Dow and S&P 500 finished at fresh records on Thursday, adding to first-quarter gains on a mix of solid economic data and expectations of easing Federal Reserve policy.
The Dow Jones Industrial Average ended at 39,807.37, up 0.1 per cent and a new all-time high that lifted the index closer to 40,000 points.
The broad-based S&P 500 advanced 0.1 per cent to 5,254.35, also a record, while the tech-rich Nasdaq Composite Index slipped 0.1 per cent to 16,379.46.
For the year, the S&P 500 is up more than 10 per cent.
The Commerce Department made a surprise upward revision to fourth quarter GDP growth, to an annual rate of 3.4 per cent, although analysts noted this was backward-looking information.
While inflation has lingered above the Federal Reserve’s two percent target range, employment reports and some other leading US data have remained strong, bolstering confidence in the US economy.
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At the same time, the Fed has signalled it still expects interest rate cuts in 2024.
Late Wednesday, Fed Governor Christopher Waller said the US central bank should either scale back or delay its interest rate cuts in response to “disappointing” inflation data.
Art Hogan of B. Riley Wealth said Thursday’s records are indicative of a “broadening out” of the market rally beyond tech companies.
Among individual companies, Home Depot fell 0.6 per cent after announcing an agreement to acquire SRS Distribution for US$18.25 billion.
Reddit dropped 14.6 per cent after Chief Executive Steve Huffman and several other top officials disclosed that they sold shares soon after the company’s initial public offering. AFP
