Technology and consumer-focused US stocks on Thursday soared as Wall Street ended its most volatile quarter in more than two years with a broad-based rally.
Banks and industrial stocks also lifted the market, and recent laggards such as Facebook Inc and Boeing Co rose.
Even so, the solid gains, which came at the end of a week cut short by a holiday, could not prevent the stock market’s first quarterly loss since the third quarter of 2015.
After two years of slow and steady growth, the market started this year with a roar. Then it plunged in early February, marking its first 10 percent drop in two years, as investors worried that the US Federal Reserve would accelerate the pace of interest rate increases.
In the weeks since, the market has remained volatile and trading has frequently turned choppy, with concerns over trade disputes a key factor.
At the end of a quarter that featured many dramatic swings — the market had 23 days where it closed up or down 1 percent or more — the Dow Jones Industrial Average was down 2.5 percent while the S&P 500 was down 1.2 percent.
US Bank Wealth Management chief equity strategist Terry Sandven said the market’s first-quarter performance has tempered expectations for the rest of the year after the strong start in January.
“Volatility has ramped up, inflationary pressures are more prevalent, interest rates are on the cusp of change... So that presents a higher level of uncertainty and higher investor angst,” Sandven said.
That angst was tempered on Thursday.
The S&P 500 on Thursday rose 35.87 points, or 1.4 percent, to 2,640.87, an increase of 2 percent from 2,588.26 on March 23.
The Dow on Thursday gained 254.69 points, or 1.1 percent, to 24,103.11, rising 2.4 percent from a close of 23,533.20 on Friday last week. The blue-chip average was briefly up 465 points.
The NASDAQ on Thursday added 114.22 points, or 1.6 percent, to 7,063.44, edging up 1 percent from 6,992.67 on March 23 and closing the quarter with a gain of 2.3 percent.
The Russell 2000 index of smaller-company stocks on Thursday picked up 16.40 points, or 1.1 percent, to 1,529.43, closing up 1.3 percent from 1,510.07 on Friday last week.
The major indices were headed higher from the start of trading on Thursday as investors sized up several company earnings reports and new government data showing that spending by US consumers rose 0.2 percent in February, while their incomes increased 0.4 percent.
The healthy income gains could spur more spending in the coming months.
Technology stocks, which were big decliners earlier in the week, powered much of the market’s climb on Thursday.
Facebook was among the gainers, its shares adding 4.4 percent. The social media giant, which has taken a beating over the past week due to privacy concerns, rose US$6.76 to US$159.79.
Even with the roller-coaster ride that technology stocks have been on lately, the sector is up 3.2 percent this year, while most other sectors are in the red.
Thursday’s run-up in technology stocks signaled that investors believe the sector was oversold in recent weeks, Sandven said, adding that perhaps some of it can be explained by fund managers padding portfolios with stocks to elevate their quarter-end results, what Wall Street calls “window dressing.”
Shares in several companies that reported improved quarterly earnings or outlooks got a boost.
PVH Corp, which owns Calvin Klein and Tommy Hilfiger, climbed US$7.41, or 5.1 percent, to US$151.43, while beverage maker Constellation Brands Inc rose US$7.43, or 3.4 percent, to US$222.92.
Solid results and a better-than-expected outlook also gave Movado Group Inc shares a lift. The watchmaker’s stock jumped US$5.20, or 15.7 percent, to US$38.40.
However, some companies had a rough day, even after delivering strong quarterly results.
GameStop Corp slumped 10.8 percent after the retailer issued a disappointing full-year revenue and earnings outlook, which overshadowed fourth-quarter results that beat Wall Street’s expectations. The stock slid US$1.53 to US$12.62.
The fallout from the heightened scrutiny on how social media portals use consumers’ personal data weighed on Acxiom Corp shares.
The marketing data firm’s stock tumbled 19 percent after it disclosed that Facebook would cease using third-party data providers like Acxiom over the next several months.
Acxiom said it does not expect the move to affect its fiscal guidance for this year, but added that it expects its total revenue and profitability to be negatively affected by as much as US$25 million.
Acxiom shares declined US$5.34 to US$22.71.
US stock markets were closed on Friday for the four-day Easter holiday weekend.
Additional reporting by staff writer
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