S&P 500 secures strongest first quarter since 2019, closing higher

S&P 500 closes higher: The S&P 500 ended the week with modest gains on Thursday, wrapping up its strongest first quarter performance in five years. 

Each of the major US indexes saw solid gains for the quarter, buoyed by a 10.16 per cent climb for the S&P 500. 

Optimism surrounding artificial intelligence (AI) stocks and expectations of interest rate cuts by the Federal Reserve contributed to the positive sentiment.

Despite slight fluctuations, the Dow Jones Industrial Average remained close to breaching the 40,000 mark for the first time. 

Economic data released on Thursday revealed faster-than-expected growth in the US economy in the fourth quarter, supported by robust consumer spending. Additionally, initial jobless claims indicated a resilient labour market. 

Investors also awaited the release of the Personal Consumption Expenditures Price Index (PCE) for insights into the Fed's monetary policy decisions. 

For the week, the Dow rose by 0.84 per cent, the S&P 500 gained 0.39 per cent, and the Nasdaq slipped by 0.3 per cent. 

In March, the Dow climbed 2.08 per cent, the S&P advanced 3.1 per cent, and the Nasdaq added 1.79 per cent. 

Over the quarter, the Dow gained 5.62 per cent, the S&P 500 surged 10.16 per cent, and the Nasdaq rallied 9.11 per cent. 

Fed Governor Christopher Waller's remarks on inflation data influenced market expectations regarding interest rate cuts, with markets pricing in a 64 per cent chance of a rate cut in June. 

While several sectors performed well during the quarter, real estate was the only sector to experience a decline. 

Notable stock movements included Walgreens Boots shares rising by 3.19 per cent after its quarterly earnings report and Home Depot slipping by 0.59 per cent following its announcement of acquiring SRS Distribution. 

Advancing issues outnumbered decliners on both the NYSE and Nasdaq. 

The S&P 500 posted numerous new 52-week highs, while the Nasdaq recorded both new highs and new lows. 

Trading volume on US exchanges was slightly lower than the average over the last 20 trading days.

(With Reuters Inputs)