Stocks Continue Upward Trend as Nasdaq Gains Despite Apple Lawsuit

Stocks continued their upward move on Thursday, with all three major indexes closing at new records. The good vibes from Wednesday’s dovish-seeming message from the Fed continued, with many central-bank watchers concluding that the Fed really does want to cut rates as soon as it is feasible — and really doesn’t want to risk sending the economy into a recession. Even news that the Justice Department and 17 states sued Apple, alleging the tech giant blocked software developers and mobile gaming companies from offering better options on the iPhone, didn't do much to shake sentiment. Apple shares sunk 4%, but the tech-heavy Nasdaq still gained 0.2%. The Dow Jones Industrial Average rose 269 points, or 0.7%, while the S&P 500 added 0.3%.

Meanwhile, shares of Reddit — the social-media company whose users fueled the meme-stocks craze — surged in their debut. It counted as a vote of confidence that could encourage other startups that have been waiting in the wings to launch their own initial public offerings. Here’s what else Heard on the Street was watching:

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Micron Finally Earns its AI Premium

 Score a big one for the “buy the dip” crowd. Micron Technology has been in an awfully big dip. The memory chip maker is no stranger to harsh sales cycles, but an inventory glut made the last one particularly bad, after customers spooked by pandemic shortages severely over-ordered. But investors have been betting on a big recovery, especially after Micron’s quarterly revenue growth turned positive for the fiscal first quarter that ended in November.

As Fisker Fails, EV Startups Need to Learn From China

Fisker is the latest electric-vehicle startup to run low on financial charge. Having put out a “going concern” warning last month, it said this week that it had secured $150 million of additional funds, but terms were punitive. Negotiations with a “large automaker” over an investment also continue. However this story ends, it will probably spell the failure of Los Angeles-based Fisker’s experiment in building an “asset-light” car business.

In Brief BMW is investing more than it would like to get its factories ready for electric vehicles—but investors are taking that in stride, writes Stephen Wilmot. Darden Restaurants has been one of the best performers in the food industry in recent years. High expectations can have negative consequences, though, writes Spencer Jakab.

Today's Markets News U.S. Sues Apple, Alleges Tech Giant Exploits Illegal Monopoly Bank of England Holds Rates as Switzerland Is First Rich Economy to Cut U.S. Home Sales Jumped 9.5% in February Reddit’s Stock Jumps in IPO

📅 What's Coming Up?

 The blackout period the Fed regularly institutes heading into meetings is over, so policymakers will be holding forth again. To that end, the Fed Board will host a "Fed Listens" event Friday on the transition to a post-pandemic economy, with opening remarks from Chair Jerome Powell, and with Governor Michelle Bowman and Vice Chair Philip Jefferson acting as moderators. Fed Vice Chair Michael Barr and Atlanta Fed President Raphael Bostic will be speaking at separate events.

Happy Investing!