Stock Market News: Dow, S&P 500 Set to Open Down
U.S. stock futures dipped early Thursday after the S&P 500 closed at a new record high, snapping a three-day losing streak.
Dow Jones Industrial Average futures, S&P 500 futures, and Nasdaq 100 futures all pointed 0.1% lower ahead of the open on the last trading day of the quarter.
Investors are still awaiting Friday’s core personal consumption expenditure (PCE) data for a potentially significant update in the Federal Reserve’s battle against inflation. Markets are pricing in three rate cuts this year, beginning in June, but the data could shift those expectations, particularly if inflation comes in hot.
Ahead of core PCE, markets were given a reality check regarding those rate aspirations as Fed Governor Christopher Waller said there was “no rush” to cut rates. Waller even suggested fewer rate cuts may be needed in light of strong labor market and inflation data in recent months.
“It is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the recent data,” Waller said in a speech at the Economic Club of New York.
However, investors appear to be seeing the positives of the economic strength, and potential boost it brings to corporate earnings as the S&P 500 notched a new all-time closing high–its 21st of the year.
“Despite the fact that inflation has remained stubbornly high, investors are more impressed with the state of the economy and the resilient consumer than they are worried about Fed rate cuts being pushed farther into the future,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance said Wednesday.
“If the economy continues to expand and corporate profits keep growing with it, the stock market will keep moving higher, even in the absence of rate cuts,” he added.
It’s been a stellar quarter of the stock market, the S&P 500 has climbed 10% and is on pace for its best first quarter since 2019, according to Dow Jones Market Data. It’s up a remarkable 22.4% over the past two quarters–the largest two-quarter gain since late 2020.