The S&P 500 index edged up 0.4% last week to a fresh record close as the market benchmark wrapped up its strongest Q1 in five years.
The quarter’s gains have come amid corporate earnings and economic data that were mostly above forecasts, boosting expectations that the Federal Reserve’s policy-setting committee will start cutting interest rates this year. At a meeting last week, a narrow majority of Fed officials reaffirmed projections for three rate cuts this year.
The latest better-than-expected data came on Thursday as revised gross domestic product for Q4 grew at a 3.4% annualized rate, up from estimates for growth of 3.2%. The University of Michigan’s consumer sentiment index was revised higher to 79.4 for March, surpassing the 76.5 reading expected in a survey compiled by Bloomberg.
February’s personal consumption expenditures index was due Friday, but with exchanges closed for the holiday, reactions to the closely watched inflation reading were delayed until markets reopen today.
Though investors appeared to be trading cautiously ahead of the inflation report, all but two sectors posted weekly gains. Utilities led the advance, up 2.8%, followed by increases of 2.2% each in energy and real estate. Financials, materials, health care, consumer staples, consumer discretionary and industrials also rose.
The two sectors in the red were technology, down 1.3%, and communication services, down 0.8%. The declines came after the sectors were the strongest performers on a percentage basis last week.
The second quarter kicks off this week with reports on February construction spending, February factory orders and March US auto sales. Investors, however, will be heavily focused on March employment data due later in the week.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
