The Treasury market will close early on Thursday, March 28, ahead of the Good Friday holiday when the U.S. stock market will remain closed. Trading in the $27 trillion Treasury market will wrap up at 2 p.m. Eastern on Thursday for the holiday.
Despite a brief pause earlier in the week, stocks are aiming to conclude a robust first-quarter rally on a positive note.
According to Dow Jones Market Data, the S&P 500 index is poised for a first-quarter gain of approximately 9.4%, marking its best three-month performance to start a year since 2019. Similarly, the Nasdaq Composite Index is targeting an 8.6% increase for the quarter, while the Dow Jones Industrial Average is up 4.8% for the same period, as reported by FactSet.
All three major U.S. stock indexes have regained record levels in the first quarter, rebounding from challenges two years ago when the Federal Reserve began raising rates to combat persistent inflation.
Despite the Fed’s policy rate being at its highest level in nearly a quarter-century and 10-year Treasury yields hovering near 4.2%, the economy has continued to progress. However, investors are eagerly awaiting signs of a potential shift to rate cuts later this year, with attention focused on a potential June rate cut.
While the major stock exchanges will be closed on Friday, fresh data on inflation will be released with the February PCE gauge, the Fed’s preferred inflation index, expected to show a monthly increase while maintaining a yearly rate of 2.8%.
Investor focus on Friday will also center on Fed Chairman Jerome Powell’s scheduled speech at 11:30 a.m. Eastern.
