Wall Street’s strong rally in 2024 took a pause as the final week of the first quarter began. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw slight declines on Monday, with traders adopting a cautious approach in the short week leading up to Good Friday.
The S&P and Nasdaq have both had a strong start to the year, with gains of nearly 10%. The focus this week will be on the release of the Personal Consumption Expenditures (PCE) price index on Friday, which includes the Federal Reserve’s preferred inflation measure.
Last week, the Federal Reserve’s reassurance of potential rate cuts and positive economic forecasts boosted market sentiment. In corporate news, Boeing shares rose after announcing the departure of CEO Dave Calhoun, while chipmakers AMD and Intel faced pressure following reports of China phasing out their products in government computers.
Bitcoin made a strong recovery on Monday, surpassing $70,000 per token for the first time in two weeks. The cryptocurrency had experienced a dip to around $61,500 a week prior, after reaching record highs earlier in the month.
Overall, despite the slight dip in major indices, certain sectors like energy and individual stocks such as Micron, Nvidia, and Reddit saw positive movements. Cryptocurrency-related stocks like MicroStrategy and Coinbase also surged alongside Bitcoin’s rally. Additionally, trending tickers like Lucid and GameStop attracted investor attention with notable price movements.
The market’s expectations for interest rate cuts have shifted since the Fed meeting in December, with a more optimistic outlook for economic growth and corporate earnings. This positive backdrop has supported the ongoing rally in stocks, despite adjustments in rate cut expectations. Goldman Sachs’ chief US equity strategist highlighted the strength of fourth-quarter earnings and increased earnings estimates for 2024 as contributing factors to the market’s resilience. The article is about how to improve your mental health through mindfulness practices.