The Dow Jones Industrial Average rose 47.29 points, or 0.12 percent, to 39,807.37. The S&P 500 added 5.86 points, or 0.11 percent, to 5,254.35, notching its strongest first quarter in five years. The Nasdaq Composite Index shed 20.06 points, or 0.12 percent, to 16,379.46.
Eight of the 11 primary S&P 500 sectors ended in green, with energy and utilities leading the gainers by going up 1.10 percent and 0.76 percent, respectively. Meanwhile, communication services and consumer discretionary led the laggards by dropping 0.30 percent and 0.14 percent, respectively.
The fourth-quarter U.S. gross domestic product (GDP) growth for 2023 was revised upward slightly to a 3.4 percent annual pace, indicating robust consumer spending and a resilient economy, according to the final reading. Previously, the government had reported that the economy grew at a 3.2 percent rate in the last quarter of the year, adjusted for inflation.
"The economy is in pretty good shape, the consumer is in pretty good shape and still spending, unemployment is still on the low side, and there continue to be pockets where the economy is thriving ... So there's money that is wanting to be spent in a variety of different ways," said George Young, portfolio manager at Villere & Company in New Orleans.
The Consumer Sentiment Index from the University of Michigan exceeded expectations for March, reaching 79.4 compared to the predicted 76.5. This level, the highest since July 2021, signals a renewed strength in consumer confidence.
"Critically, consumers exhibited confidence that inflation will continue to soften," said Joanne Hsu, Surveys of Consumers director for the university. "Assessments and expectations of personal finances improved modestly from last month, as the perceived negative effects of high prices and expenses on living standards eased."
Furthermore, pending home sales data for February surpassed estimates, showing a 1.6 percent month-over-month increase instead of the expected 1.5 percent. This rise is attributed to more people joining the workforce and higher inventory levels in the housing market.
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