The First Slice for Wednesday, March 13, 2024
Recently, the U.S. inflation report came in hotter than what economists predicted but wasn’t as alarming as many investors feared. This news actually gave the stock market a nice boost. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all climbed up, with the S&P 500 hitting its 17th record high of 2024. Pretty impressive, right?
- The Dow Jones Industrial Average advanced 235.83 points, or 0.6%.
- The S&P 500 was up 57.33 points, or 1.1%.
- The Nasdaq Composite surged 246.36 points, or 1.5%.
Despite the rise in consumer prices by 3.2% in February compared to last year, investors are still hopeful. They believe the Federal Reserve might cut interest rates later this year, making it cheaper for businesses to borrow money and potentially giving the stock market another push.
In the stock market, tech companies and big names like Nvidia and Oracle showed significant gains. Nvidia soared due to the high demand for artificial intelligence, while Oracle’s earnings exceeded expectations, leading to a jump in its share price. However, not all was rosy. Southwest Airlines faced a drop in its stock price due to issues with aircraft deliveries from Boeing.
Looking ahead, Dollar Tree and Dollar General are set to report their earnings, which could reveal how lower-income Americans are handling the current economic pressures. Also, keep an eye out for the Labor Department’s producer-price index, another important measure of inflation.
Investors are increasingly optimistic that the U.S. can dodge a recession as it wraps up its battle with inflation. This positive vibe is spreading beyond just the big tech firms and into smaller companies, as seen in the performance of the equal-weighted S&P 500 and the Russell 2000 index.
Lastly, for all you cryptocurrency enthusiasts, Bitcoin was trading around $71,395, just a tad down from its all-time high…………[read more]
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