The Dow Jones Industrial Average (DJIA) is beginning the second quarter above the 40,000 level for the first time as the rally in U.S. equities continues.
All three major U.S. stock indices are starting Q2 in the green following the best first quarter to any year since 2019.
From January through March, the Dow Jones Industrial Average, which is comprised of 30 blue-chip stocks, rose 6%.
At the same time, the benchmark S&P 500 index and technology-laden Nasdaq index each gained 11% during Q1.
By comparison, the Toronto Stock Exchange increased 6% during this year’s first quarter.
U.S. markets also wrapped up a winning March and their fifth consecutive month of positive growth. All three U.S. indices are currently at record highs.
Hype surrounding artificial intelligence (AI) and expectations for interest rate cuts have largely been responsible for the stock market rally year to date, though the current rally is starting to broaden out beyond technology securities.
If history is any guide, the current rally in U.S. stocks is likely to continue in 2024. Data from the Carson Group shows that the benchmark S&P 500 index finished the year higher 10 out of the 11 previous times that it achieved a gain of 10% or more in the first quarter.
Markets look set to open higher to start Q2 after the Personal Consumption Expenditures (PCE) price index showed that inflation in the U.S. rose an annualized 2.8% in February, which was in line with economists’ expectations.
Tech Insider
