On the evening of the 28th Beijing time, US stocks opened with mixed ups and downs on Thursday. The S&P 500 index is expected to record its best first-quarter performance in five years. The US GDP growth rate in the fourth quarter was revised to 3.4%, which indicates steady economic growth.
As of press release, the NASDAQ is up 0.04%, the S&P 500 is up 0.10%, and the Dow is up 0.11%.
Thursday is the last trading day for this week, March, and the first quarter.
Dubravko Lakos-Bujas, chief global equity strategist at J.P. Morgan Chase, warned on Wednesday that the best-performing stocks in the US stock market are overcrowded, increasing the risk of an impending pullback.
He recommended that clients consider diversifying their holdings and considering risk management in their portfolios. “It could come out of nowhere one day. This has happened in the past; we have experienced flash crashes,” Lakos-Bujos said. “One large fund began to be deleveraged. The second fund heard the news and tried to adjust its position. The third fund was basically caught off guard. Next, the market began to release more and more momentum.”
Arnaud Cayla, Deputy CEO of Cholet Dupont Asset Management, said, “Optimism is high, mainly due to the central bank's reassurance of upcoming interest rate cuts. Investors have no reason to sell.”
The US stock market will be closed on Friday due to Good Friday, but economic data relating to personal income, consumer expenses, and personal consumption expenses will be released on the same day.
Art Hogan, chief market strategist at B.Riley Wealth, said, “This week's trading hours have been shortened and there is a lack of important news. The most important PCE inflation data will be released on Friday, and investors are excited by the US stock market closed on the same day, and rising risk appetite seems to be driving the market.”
In terms of Thursday's economic data, the US government's two main indicators of economic activity grew strongly at the end of last year, indicating that the economy is still expanding at a steady pace.
According to data released by the US Bureau of Economic Analysis on Thursday, the gross domestic product (GDP) equivalent to an annual rate of increase in the fourth quarter was raised to 3.4%. Consumer spending, which accounts for two-thirds of GDP, has also been raised, equivalent to an annual increase of 3.3%.
The US government's gross domestic income (GDI), another major measure of economic activity, grew by 4.8%, the biggest increase in two years.
The US Department of Labor reports that the number of renewed jobless claims for the week ending March 16 was 1,819 million, which is expected to be 1,815 million, compared with the previous value of 1.807 million. The number of jobless claims in the US until the beginning of the week of March 23 was 210,000. It is expected to be 212,000, compared with the previous value of 210,000. The four-week average number of jobless claims in the US until the beginning of March 23 was 21,000, compared to the previous value of 21.25 million.
Federal Reserve Governor Waller set the tone for the Easter holiday on Wednesday, implying that the Federal Reserve will be patient and not indecisive in reducing borrowing costs this year.
Although this statement slightly lowered expectations that the Federal Reserve would cut interest rates as early as June and boosted two-year US Treasury yields, it is clear that Waller is only talking about timing. “The question is just when do you start,” he said.
Federal Reserve Chairman Powell may also express the same opinion when attending a panel discussion in San Francisco on Friday. At that time, the February personal consumption expenditure (PCE) inflation index favored by the Federal Reserve will be announced.
Individual stocks in focus
Star technology stocks generally fell; Meta, Apple, and Nvidia fell about 1%, while Tesla, Amazon, and Microsoft fell slightly.
Most popular Chinese securities rose. Xiaopeng, Ideal, JD, and Bilibili rose about 3%, Baidu rose nearly 2%, and NIO and Ali rose about 1%.
In terms of individual stocks, the “US version of the Tieba”$Reddit (RDDT.US)$It fell more than 8%, and the market's bearish bets increased dramatically.
$Restoration Hardware (RH.US)$The increase was nearly 11%, and Wedbush raised its target price.
$Coinbase (COIN.US)$With an increase of more than 3%, digital currency concept stocks have collectively strengthened.
editor/tolk