The U.S. economy is performing well.

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What you need to know today

On Thursday, the S&P 500 surged to new highs, fueled by Nvidia's impressive earnings that lifted the broader market and tech sector. The index gained 2.11%, marking its best day since January 2023. The NASDAQ Composite advanced nearly 3%, while the Dow Jones Industrial Average jumped 1.18%, closing above the 39,000 level for the first time ever.

On Thursday, Reddit filed its IPO prospectus with the Securities and Exchange Commission, marking the first major tech initial public offering of the year. The company intends to trade on the New York Stock Exchange under the ticker symbol "RDDT."

Novavax's shares surged after resolving its contentious dispute with Gavi over a canceled Covid vaccine purchase, removing a significant uncertainty surrounding the company.

Intuitive Machines' IM-1 mission has successfully landed on the moon, marking a historic first for a U.S. company. The company's Nova-C cargo lander, named "Odysseus," is the first American spacecraft to touch down on the lunar surface since 1972. "We are on the surface ... welcome to the moon," Intuitive Machines' mission control announced. "Odysseus has found his new home."

Goldman Sachs has identified "Seven Samurai" stocks in Japan as potential equivalents to the U.S.'s "Magnificent Seven."

The bottom line

The U.S. economy appears to be humming along, at least for now.

The cost pressures for manufacturers and service businesses decreased again in February, as indicated by a key gauge.

S&P Global's composite index of purchase managers decreased slightly to 51.4 in February, but at a slower pace compared to January.

Although the service sector experienced a slight decline in growth, the manufacturing sector experienced a strong return to growth, with factory output increasing at its fastest rate in ten months.

S&P Global's chief business economist, Chris Williamson, stated that both manufacturing and services are expanding for the first time in three months, with subdued price pressures accompanying the expansion.

Williamson stated that the latest data shows the economy expanding in the first quarter, with annualized GDP growth expected to be around 2%.

On Thursday, Fed vice chair Philip Jefferson expressed caution about the potential for things to go wrong despite reasons for optimism.

Jefferson stated that he foresees at least three significant risks in the future. He predicted that consumer spending may be more resilient than he initially anticipated, which could hinder inflation's progress.

He added that employment could decline as economic growth factors diminish.

Geopolitical risks could also remain elevated, Jefferson pointed out.

The escalation of conflict in the Middle East could lead to higher commodity prices, including oil, and have a significant impact on global financial markets. Despite the potential for the U.S. economy to avoid a recession or a soft landing, it is crucial to remain vigilant and adapt to ongoing risks.