U.S. stocks reached a record high after a three-day lull, with the S&P 500 climbing 0.9% to 5,248.49. The Dow Jones industrial average and the Nasdaq composite also saw gains, though they fell short of their own records. Merck surged 5% after receiving approval for a treatment for pulmonary arterial hypertension, while Cintas reported stronger profits than expected, boosting the S&P 500. Trump Media & Technology Group saw a 14.2% increase in its shares, and Robinhood Markets rose 3.7% after introducing a new credit card for Gold members.

However, Nvidia experienced a 2.5% decline after two successive losses, despite a strong performance earlier in the year. GameStop also fell by 15% following its latest quarterly profit report and a drop in revenue. Treasury yields decreased slightly, with the yield on the 10-year Treasury falling to 4.19%, with the bond market anticipating the release of the latest consumer spending update by the U.S. government on Good Friday.

The S&P 500 is set for its fifth consecutive winning month, with the U.S. economy remaining resilient despite high interest rates. The Federal Reserve is expected to lower interest rates this year in response to cooling inflation. However, critics argue that more companies need to show strong profit growth to support the recent market gains, especially as inflation reports have been higher than expected.

Traders anticipate the Federal Reserve to start cutting interest rates in June, with the expectation that stocks perform well when more than half of the world’s central banks are easing rates. While the world is not yet at that point, some central banks, such as Switzerland’s, have already begun cutting rates. Overseas, European and Asian stock markets were mixed, with Chinese stocks seeing a decline of 1.4% in Hong Kong and 1.3% in Shanghai.

Overall, U.S. stocks are on an upward trajectory, with investors banking on continued economic resilience despite concerns about inflation and profit growth. The coming months will be crucial in determining the direction of interest rates, which could impact stock market performance. Traders are closely watching economic data, central bank actions, and corporate performance to guide their investment decisions in the volatile market environment.

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