Dow And S&P 500 Reach Highs; Dow Gains Over 250 Points| Investor’s Business Daily

Stocks kept the rally going Thursday morning with major indexes all posting gains on the stock market today. Enthusiasm apparently spilled over from the final day of the Federal Reserve meeting and Fed Chair Jerome Powell’s comments on Wednesday. Now investors can watch for moves from Magnificent Seven stock Microsoft (MSFT) as it hosts its artificial intelligence event today.

decisions on interest rates impact both the economy and the stock market. IBD News Editor Ed Carson shares how reactions by each can differ and what investors need to know.” vid-name=”Fed Interest Rate Decisions: Market Influence And Investor Psychology Impact Of Cuts And Hikes” vid-cat=”Industry Insights” vid-date=”03/20/2024″ vid-date-tmsp=”1710938202″ vid-image=”https://www.investors.com/wp-content/uploads/2024/03/cReAVOpP-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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As expected, Fed Chief Powell indicated three quarter-point rate cuts in 2024, but didn’t give details on when they would start. The odds according to the CME FedWatch survey currently sits at 63.5% for a quarter-point cut at the June 12 meeting.

With the current federal funds rate at current 5.25%-5.5%, three cuts would drop the current federal funds rate of 5.25%-5.5% to between 4.5% and 4.75% at the end of 2024.

The Fed remains steadfast in getting to the 2% inflation level, but says it will take time. Be watchful today as financial markets often have a second-day reaction to Fed meetings that can cause the stock market to reverse course.

Stock Market Today: Indexes Celebrate Anniversary

Stocks started the day Thursday strong, with the Dow Jones gaining 0.8%, a jump of more than 300 points in stock market trading. The tech-heavy Nasdaq advanced 0.6% higher. Meanwhile, the S&P 500 rose 0.6% and held above the 5,200 level as the small-cap Russell 2000 popped nearly 1.4%.

Volume rose on the New York Stock Exchange and the Nasdaq on the stock market today compared with the same time on Wednesday.

The Dow Jones Industrial Average, S&P 500 and Nasdaq all closed at record highs Wednesday. Small caps were the clear winner in Wednesday’s session. The Russell 2000 closed 1.9% higher after Monday’s near 2% drop.

The indexes have come a long way. This Saturday, March 23, marks the four-year anniversary of the pandemic low for the major indexes. The Dow has climbed 113% since the March 23, 2020 low, while the S&P 500 surged 134%. The Nasdaq rallied 139% over the same time frame, according to Dow Jones Market Data.

The Invesco QQQ Trust (QQQ) advanced 1%. The Innovator IBD 50 ETF (FFTY) acted strong and jumped 1.8%.

The 10-year Treasury yield added 2 basis points to 4.29%. And West Texas intermediate crude oil dropped to $80.50 a barrel.

Jobless Claims Rise; Magnificent Seven Stock Hosts Event

Weekly initial jobless claims for the week ended March 16, came in at 210,000 vs. the 209,000 expected, and lower than the revised 212,000 from the prior week.

Bitcoin’s price rose to just above $67,200, taking bitcoin-related stocks down with it. MicroStrategy (MSTR), which owns a large amount of bitcoin, surged 9% on the stock market today.

Coinbase (COIN) added more than 7% while Marathon Digital (MARA) bumped up nearly 2%. Riot Platforms (RIOT) gained more than 1%.

Dow Jones component Microsoft climbed nearly 1% to a record high ahead of its “New Era of Work” event starting at noon ET Thursday. Microsoft will discuss AI innovations, along with what’s new with Windows and Surface computers.

Leaderboard stock Nvidia (NVDA) gained around 1% on the stock market today.

Stock Market Today: Micron Crushes Estimates

Micron (MU) soared more than 15% in heavy volume after reporting a surprise fiscal second-quarter profit and higher sales than estimates, late Wednesday. The memory-chip maker also gave a current quarter adjusted earnings and sales outlook that was above views.

Shares gapped up and are extended from a flat base with a 72.31 buy point. Further, Micron stock reached a 52-week high on the move. It was the biggest gainer on the S&P 500 as it reached a record high.

Broadcom (AVGO) popped more than 7% after TD Cowen upgraded the stock to outperform from market perform and raised its price target to 1,500 from 1,400.

Five Below (FIVE) gapped down more than 12% in heavy volume after the discount retailer reported its January-ended quarterly results with a miss on profit and sales expectations. It also gave current quarter earnings and revenue estimates lower than analyst estimates. Further, the company cited in-store thefts weighing on its bottom line. The stock plunged below its 50-day moving average, triggering a sell signal.

Other Market Action: Biotech Breaks Out

IBD SwingTrader stock Neurocrine Biosciences (NBIX) jumped and broke out of a flat base in heavy trading, hitting the 143.35 buy point. Shares are in the 5% buy zone up to 150.52.

Apparel retailer Guess (GES) catapulted 23% higher in huge volume and topped a profit zone of a flat base with a 24.60 buy point. The surge came after the company reported better-than-expected results for its fiscal fourth quarter. It declared a special dividend of $2.25 a share.

Lastly, social media platform Reddit (RDDT) is due to hold its initial public offering on the stock market today at 34 per share.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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