U.S. Stock Market Closure

The U.S. stock market is set to close on Friday, March 29 in observance of Good Friday. This closure will impact trading activity and volatility across various sectors.

Early Closure of Treasury Market

The $27 trillion Treasury market concluded its operations earlier than usual, at 2 p.m. Eastern on Thursday, to align with the Good Friday holiday.

Market Performance in Q1 2021

Despite a brief slowdown earlier in the week, U.S. stocks performed strongly in the first quarter. The S&P 500 index gained an impressive 10.2%, its best start to a year since 2019. The Nasdaq Composite Index rose 9.1% for the quarter, while the Dow Jones Industrial Average recorded 5.6% growth.

Following a turbulent period due to the Federal Reserve’s interest rate hikes, all three major U.S. stock indexes reclaimed record territory in Q1 2021.

Investor Expectations for Rate Cuts

Despite steady economic growth, investors are eagerly awaiting the possibility of rate cuts later this year. Eyes are specifically on a potential June rate cut, as the Federal Reserve’s policy rate remains at its highest in almost 25 years.

Positive Economic Outlook and Easing Inflation

Recent economic data indicate consumer optimism and confidence in the economy, as well as easing inflationary pressures.

Key Economic Indicator Release

Although the major stock exchanges will be closed on Friday, investors will still receive fresh data on inflation with the release of the February Personal Consumption Expenditures (PCE) gauge. The PCE gauge is the Fed’s preferred measure of inflation and is expected to show a monthly increase while remaining steady at a 2.8% yearly rate.

Fed Chairman’s Speech

Fed Chairman Jerome Powell is scheduled to speak at 11:30 a.m. Eastern on Friday. The market will closely observe Powell’s remarks for further insights into potential rate cuts and the future direction of monetary policy.