How markets smashed records during the first quarter

The first quarter of 2024 was a record-smasher for markets, even as Wall Street contended with higher-for-longer interest rates.

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. Before the Bell is off on Friday, March 29 and will be back on Sunday, March 31. The first quarter of 2024 was a record-smasher for markets, even as Wall Street contended with higher-for-longer interest rates. Investors ended 2023 on an exuberant note. Markets overcame a regional banking crisis and geopolitical turmoil and entered a powerful bull market. The economy avoided a widely expected recession. Traders eagerly anticipated the Fed would begin the first of six rate cuts this year in March. But a spate of hot economic data and warnings from Fed officials forced investors to recalibrate those hopes to align with the Fed’s projected three cuts, likely beginning in June or July. While the stock market saw intermittent sell-offs, it continued marching higher as robust corporate earnings and a strong labor market renewed hopes that the economy will avoid a recession. The S&P 500 index is on track to climb 10% for the first three months of the year, as of Wednesday’s close. The Dow Jones Industrial Average and the Nasdaq Composite are on pace for 5.5% and 9.3% gains, respectively. The S&P 500 on Wednesday logged its 21st record-high close of the year. The first 17 were recorded during the first 50 trading days of 2024, the largest tally during that period since 1998, according to Bespoke Investment Research. The Dow and Nasdaq have also notched repeated record highs.