S&P 500 Rises to New Record to Close Out Monster First Quarter

The S&P 500 rose Thursday to cap off its best first-quarter performance since 2019.

The broad U.S. stock index advanced 0.1%, notching its 22nd all-time high of the year. The Dow Jones Industrial Average added about 47 points, or 0.1%, also closing at a record. The Nasdaq Composite fell 0.1%.

Many investors were optimistic about the market going into 2024, coming off big gains in stocks last year led by megacap tech shares.

But few predicted just how powerful the rally would be. A resilient economy, excitement about artificial-intelligence technology and expectations for interest-rate cuts this year all bode well for the stock market.

“It was a surprising quarter,” said Zachary Hill, head of portfolio management at Horizon Investments. “It does appear that there’s good fundamental support for these moves.”

For the year, the S&P 500 is up 10%.

Investors on Thursday got more reasons to be upbeat. The U.S. economy grew in the fourth quarter even more than previously thought, according to the government’s revised estimate for gross domestic product. Consumer confidence rose to its highest level in almost three years, according to a University of Michigan survey.

Data on Friday will give investors fresh readings on consumer spending and the Federal Reserve’s preferred inflation gauge. The U.S. stock and bond markets will be closed for Good Friday.

Fed officials at their policy meeting this month penciled in three interest-rate cuts this year, as they had in December. Fed governor Chris Waller late Wednesday said that there is no rush to cut rates, given recent inflation readings that came in higher than expected.

“We’re not out of the woods yet by any means” regarding inflation, said Dave Grecsek, managing director in investment strategy and research at Aspiriant.

The 10-year U.S. Treasury yield—a benchmark for mortgages and other borrowing costs—slipped to 4.192%.

Among individual stocks, shares of Walgreens Boots Alliance rose 3.2% on Thursday after the pharmacy giant’s quarterly results beat Wall Street estimates, despite a steep loss. Furniture retailer RH saw shares jump 17% after forecasting customer demand would pick up this year as interest rates ease.

Shares of AMC Entertainment shares tumbled 14% after the movie-theater chain filed to sell up to $250 million worth of stock in a bid to shore up its balance sheet. Shares of the parent of Donald Trump’s Truth Social fell 6.4%, after surging in its first two sessions of trading.

Write to Hannah Miao at [email protected]