Dow jumps 400 points to end tumultuous first quarter as markets move on from bank crisis
US stocks jumped on Friday, ending the first quarter on a positive note.
A key price gauge showed continued signs that inflation is cooling off.
The S&P 500 and Nasdaq have gained 6% and 17%, respectively, since the start of the year.
US stocks rose higher on Friday, ending a tumultuous first quarter on a positive note as a key price gauge showed continued signs that inflation is cooling off.
The Personal Consumption Expenditures Index — the Fed's preferred inflation measure — rose 0.3% in February from the prior month, lower than the expected 0.4%.
The S&P 500 has gained 6% and the tech-focused Nasdaq Composite is up 17% since the start of the year. Meanwhile, the Dow Jones Industrial Average was nearly flat over the quarter.
That comes after a rocky few months for markets. Investors began the year hopeful that inflation was easing enough for the Fed to cut rates soon. But sticky inflation data and hawkish Fed comments unwound those bets. Then the failure of Silicon Valley Bank and fears of a recession on the horizon whipsawed markets again.
Here's where US indexes stood at the 4:00 p.m. ET close on Friday:
S&P 500: 4,109.30, up 1.44%
Dow Jones Industrial Average: 33,274.15, up 1.26% (415.12 points)
Nasdaq Composite: 12,221.91, up 1.74%
Here's what else is going on:
The new bull market in stocks has begun, as history shows the bear narrative is falling apart, according to Fundstrat's Tom Lee.
The Fed's rate hikes are a "megathreat" to the economy, according to "Dr. Doom" Nouriel Roubini.
The banking crisis will have a "long tail" as risks move from economic to financial contagion, according to Mohamed El-Erian.
First Citizens Bank, the buyer of SVB's assets, is run by a North Carolina family that's bought over 20 failed banks since 2008.
The US dollar is about to "stare into the abyss," and will likely keep dropping, one analyst said.
In commodities, bonds, and crypto:
Oil prices traded mixed, with West Texas Intermediate up 1.49% to $75.47 a barrel. Brent crude, the international benchmark, slipped 0.26% to $79.68 a barrel.
Gold edged lower 0.50% to $1,968.73 per ounce.
The 10-year Treasury yield ticked lower five basis points to 3.494%.
Bitcoin moved higher 1.44% to $28,341.38.
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