Wall Street Week Ahead: Broadening US market rally gets boost from dovish Fed

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NEW YORK, March 23 — A reassuring economic outlook and dovish signals from the Federal Reserve are encouraging investors to look beyond the massive growth and technology...

In another sign of broadening, more S&P 500 stocks are outperforming the benchmark, 180 so far this year as of Thursday versus 150 last year. — AFP picNEW YORK, March 23 — A reassuring economic outlook and dovish signals from the Federal Reserve are encouraging investors to look beyond the massive growth and technology stocks that have fuelled the US stock market’s gains over the past year.

Investors in the coming week will be watching yesterday’s personal consumption expenditures price index that will offer the latest read on inflation. The end of the first quarter also could prompt volatility as fund managers adjust their portfolios. The wider rally “means that leadership isn’t so concentrated and susceptible to a correction,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

The latest blow for Apple came this week when the Department of Justice alleged the iPhone maker monopolised the smartphone market, highlighting the regulatory risks that could make investors wary of Big Tech. Some investors believe the group could get a boost from the Fed’s outlook, which kept in place a previous forecast of three 25 basis-point interest rate cuts, despite the central bank’s upgraded growth projections.

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