Wall Street set more records on Thursday as US stocks approached the end of their final month and quarter.
The S&P 500 added 5.86 points, or 0.1%, to its all-time high set the previous day and closed at 5,254.35. That sent its gains through the first three months of the year to 10.2%. The only quarter that was better in the last two years was the quarter immediately before it.
The Dow Jones Industrial Average rose 47.29 points, or 0.1%, to 39,807.37 points, also setting a record. The Nasdaq Composite Index fell 20.06 points, or 0.1%, to 16,379.46 points. It's just shy of its all-time high.
The stock market has been on an almost unstoppable rally since late October, and the S&P 500 just had its fifth straight winning month. They jumped as the US economy remained remarkably strong despite higher interest rates aimed at controlling inflation. As inflation continues to slow from its peak, the Federal Reserve has indicated that it is likely to cut interest rates several times later this year.
Thursday was the last day of trading in the US stock and bond markets for the month and quarter. Financial markets will be closed on Friday for Good Friday.
Most stocks rose during the quarter, led by a group of companies that are benefiting from Wall Street's ongoing craze around artificial intelligence technology. Shares of Nvidia, whose chips are powering much of the AI rush, rose 82.5%.
The only stock in the S&P 500 that did better was Super Micro Computer, which just joined the index recently because it also got caught up in the AI craze. The company, which sells server and storage systems used in artificial intelligence and other computing, saw its shares rise a staggering 255.3% during the quarter.
They more than made up for the stumbles that companies like Tesla and Boeing faced during the quarter. Tesla shares fell 29.3%, continuing its volatile march, after more than doubling last year. Meanwhile, Boeing stock fell 26% as concerns grew over its safety and manufacturing quality.
In the bond market, Treasury yields rose on Thursday after some mixed reports about the economy.
One of them said that the growth of the US economy in the last three months of last year was stronger than previous estimates. Another said fewer American workers filed for unemployment benefits last week, the latest sign of strength in the labor market.
Other reports showed that sentiment among US consumers is stronger than economists expected, but manufacturing in the Chicago area is shrinking more than expected.
The yield on the 10-year Treasury note rose to 4.20% from 4.19% late Wednesday. The yield on two-year Treasury notes, which closely tracks Fed expectations, rose to 4.62% from 4.57%.
There is still hope on Wall Street that the Fed will start cutting its key interest rate in June. Lower interest rates relieve pressure on the economy, while boosting investment prices. But progress on lowering inflation has become more difficult recently, with reports this year coming in hotter than expected.
Fed Governor Christopher Waller, in a speech late Wednesday, said there was “no rush to cut rates,” in light of this data.
“In fact, this tells me that it is prudent to hold this rate at its current restrictive stance perhaps longer than previously thought to help keep inflation on a sustainable path toward 2%,” Waller said.
Besides interest rates staying high longer, critics say other threats could also derail the stock market rally. Chief among them is that stock prices rose faster than corporate profits, making them appear expensive by some measures. Companies will need to achieve strong earnings growth to justify these moves.
On Wall Street, RH stock jumped 17.3% even though the home furnishings retailer reported weaker earnings and revenue in the latest quarter than analysts expected. It also noted that demand was trending up, and gave revenue forecasts for next year that were slightly higher than analysts' expectations.
Analysts said investors are ready to pounce on signs of recovery in the housing market, with interest and mortgage rates expected to fall later this year.
Chemours stock fell 9.1% despite reporting better fourth-quarter results than analysts expected. It gave forecasts for earnings before taxes and other items in the current quarter, which were lower than analysts' expectations. The company also said its board of directors completed its internal reviews of accounting issues and found some weaknesses in its internal controls over financial reporting.
Trump Media and Technology Group was also on the losing end. The stock of the company behind former President Trump's Truth Social app fell 6.4% after rising more than 14% in the past two days. Its shares have soared far beyond what critics say is reasonable for a loss-making company, driven by Trump fans and investors hoping to cash in on the mania.
In stock markets abroad, the Nikkei 225 index in Tokyo fell 1.5% amid speculation about whether Japanese officials will take steps to support the value of the Japanese yen.
Movements were more modest in most parts of Asia and Europe.
Choi writes for the Associated Press. AP writer Ellen Kurtenbach contributed to this report.
