*

Comm services, tech best performing sectors for the

quarter

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US fourth-quarter growth revised up; weekly jobless claims

fall

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Walgreens gains after quarterly earnings

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Indexes: Dow up 0.06%, S&P up 0.09%, Nasdaq down 0.13%

(Updated at 2:20 p.m. ET/ 1820 GMT)

By Chuck Mikolajczak

NEW YORK, March 28 (Reuters) - U.S. stocks held near the

unchanged mark on Thursday, with the S&P 500 poised to notch its

best first quarter performance since 2019, as investors digested

the latest batch of economic data while looking towards then

next inflation reading.

Each of the three main U.S. indexes were set for solid

quarterly gains, led by a climb of more than 10% for the S&P

500, aided by as optimism over artificial intelligence (AI)

related stocks and expectations the U.S. Federal Reserve will

begin to cut interest rates this year.

The blue-chip Dow sat less than 1% away from

breaching the 40,000 level for the first time.

Data on Thursday showed the U.S. economy grew faster than

previously estimated in the fourth quarter, partly due to strong

consumer spending, while a separate report showed initial

jobless claims indicated the labor market remains on solid

footing.

While U.S. equity markets will be closed for the Good Friday

holiday, the focus will be on the release of the Personal

Consumption Expenditures Price Index (PCE), the Fed's preferred

inflation gauge, for clues on the timing and size of rate cuts

this year from the central bank.

"Without a growth contraction it's going to be difficult for

the Fed to reach its 2% target this year so volatility around

that repricing is likely to tick higher," said Dylan Kremer,

chief investment officer at Certuity in Miami.

"But as long as the economic activity remains robust and

labor markets remain robust the US consumer will remain active

and continue to buoy demand which should continue to support

prices."

The Dow Jones Industrial Average rose 21.66

points, or 0.06%, to 39,781.74, the S&P 500 gained 4.51

points, or 0.09%, to 5,253.00 and the Nasdaq Composite

lost 22.14 points, or 0.13%, to 16,377.29.

Overnight, Fed Governor Christopher Waller said recent

disappointing inflation data affirms the case for the central

bank to hold off on cutting its short-term interest rate target,

but did not rule out trimming rates later in the year.

Markets are pricing in a roughly 64% chance the Fed will cut

rates by at least 25 basis points (bps) in June, according to

CME's FedWatch Tool.

While the communication services and tech

are the best performing of the 11 major sectors this

quarter, only real estate is on pace to record a

decline.

Walgreens Boots shares rose 3.64% after its

quarterly earnings in which it recorded an impairment charge on

its investment in clinic operator VillageMD.

Home Depot ( HD ) slipped 0.57% after the home improvement

retailer said it would buy building materials supplier SRS

Distribution in an $18.25 billion deal in its largest

acquisition.

Estee Lauder ( EL ) jumped 6.52% after BofA Global

Research upgraded the cosmetics giant's rating to "buy" from

"neutral".

Advancing issues outnumbered decliners by a 1.99-to-1 ratio

on the NYSE and by a 1.5-to-1 ratio on the Nasdaq.

The S&P 500 posted 84 new 52-week highs and no new lows

while the Nasdaq recorded 250 new highs and 45 new lows.