Wall Street edges higher ahead of Easter break, eyes strong Q1 gains

Wall Street edged higher on Thursday as investors prepared for the Easter break and awaited key data to assess the Federal Reserve's policy direction.

The three main US indexes were poised for significant quarterly gains, buoyed by an AI-driven rally and optimism surrounding the Fed's rate cuts, which propelled Wall Street to record highs earlier this month.

In early trading, the blue-chip Dow saw marginal gains, remaining on course to breach the 40,000 level for the first time.

Jeremy Straub, CEO and chief investment officer at Coastal Wealth, remarked, "The stock market performed exceptionally well in the first quarter of 2024, and with strong earnings anticipated, market sentiment remains highly optimistic."

Investors are closely monitoring the upcoming first-quarter earnings season, expecting it to drive further market sentiment.

Data released on Thursday indicated faster-than-expected growth in the US economy for the fourth quarter, coupled with a decline in initial claims for state unemployment benefits.

Attention is now focused on the Personal Consumption Expenditures Price Index (PCE), scheduled for release on Good Friday, when the US stock market will be closed.

Fed Governor Christopher Waller's recent remarks suggested that disappointing inflation data supports the case for maintaining the central bank's short-term interest rate target, although the possibility of rate cuts later in the year has not been ruled out.

As of 10:03 a.m. ET, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite were all trading slightly higher.

Most megacap growth stocks experienced declines, weighing on the Nasdaq, while chipmaker Nvidia struggled for direction after recent losses.

The Philadelphia Semiconductor Index, however, edged up, poised to conclude its second consecutive quarter with double-digit gains.

Despite mixed performance among S&P 500 sectors, communication services and technology stocks remained strong performers throughout the quarter.

Cryptocurrency and blockchain-related companies saw gains as bitcoin rebounded following a brief slide.

Advancing issues outnumbered decliners on both the NYSE and Nasdaq exchanges.

The S&P index recorded numerous new highs, signalling continued market strength.

(With Reuters inputs)