U.S. stocks rose for the third consecutive day, driven by gains in technology stocks. The market is responding positively to the possibility of the Federal Reserve cutting interest rates, following remarks from Fed officials. Major indices continued their upward momentum, initially sparked by speculation over tariff reductions by former President Trump.
The S&P 500 index increased by 2.03%, while the Nasdaq 100 climbed 2.74%. This marks the longest streak of daily gains of at least 1.5% for the S&P 500 since 1974. Meanwhile, the CBOE Volatility Index (VIX) hovered around 26.
Among individual stocks, IBM (IBM, Financial) fell 6.6% after disappointing earnings. Tractor Supply (TSCO) saw a 3.4% decline due to reduced spending and lowered forecasts. However, Chipotle Mexican Grill (CMG) shares rose despite a drop in quarterly sales and a lowered annual forecast, and American Airlines Group (AAL) shares climbed even after canceling its annual profit outlook.
Fed Governor Waller indicated support for a rate cut if tariffs lead to job losses, and Cleveland Fed President Hammack suggested action could be taken as early as June if economic trends become clear. Economic data showed a slight rise in jobless claims, while March saw the largest drop in U.S. existing home sales since 2022.
