S&P Achieves Longest Winning Streak Since Late 2021 in Current Market Performance

Wall Street experienced a surge on Thursday, rebounding from a weak start. This came after the Federal Reserve decided to pause its rate hikes, although temporarily.

• The Dow saw a rise of 428 points, equivalent to 1.2%, reaching 34,408.
• The S&P 500 also rose by 53 points, or 1.2%, and hit 4,425. This marks the benchmark index’s sixth consecutive winning session, its longest streak since November 2021, as reported by the Wall Street Journal.
• The Nasdaq climbed by 156 points, or 1.1%, to reach 13,782.

Lennar, a homebuilder, played a pivotal role in driving the benchmark S&P 500 with a substantial gain of 3.6%. Their latest quarterly report showed stronger profit and revenue than expected. Additionally, they provided a forecast for upcoming deliveries that was stronger than anticipated, stating that customers are accepting the “new normal” of higher interest rates. On the other hand, Kroger experienced a notable loss in the market after reporting slightly weaker revenue for the quarter compared to expectations. Despite reporting stronger profit than expected and reaffirming its financial forecasts for the year, Kroger’s value fell by 2.9%.

Market trends indicate a solid upward momentum. The S&P 500 has risen approximately 23% since reaching a low point in October. This can be attributed to the economy successfully avoiding a recession and a decline in inflation from its peak last summer. However, investors are now facing a relatively quiet period of economic reports until the next Federal Reserve decision on interest rates in late July. This makes it challenging to accurately assess the impact of high interest rates and persistent inflation. The Commerce Department is set to release the next update for the Fed’s preferred inflation measure, which tracks personal consumption and expenditures, on June 30.

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