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US stocks climb on cooler inflation data as the S&P 500 heads for a winning quarter

NYSE Traders
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 2, 2020.Brendan McDermid/Reuters
  • US stocks climbed on Friday, with the S&P 500 and Nasdaq on pace for a winning first quarter.

  • Friday data showed core PCE, the Fed's preferred inflation gauge, cooled more than expected.

  • The Nasdaq 100 this week entered a bull market, closing Wednesday 20% above its December low.

US stocks moved higher on Friday, with the S&P 500 and the Nasdaq 100 on pace to notch winning quarters, despite economic uncertainty and a sudden bank crisis in March.

The benchmark S&P 500 and the tech-heavy Nasdaq are up roughly 5.5% and 14.8%, respectively. The Dow Jones Industrial Average is down slightly in that stretch.

Stocks prevailed in a strong quarter despite broader headwinds that included the collapse of Silicon Valley Bank and other banks, a forced-takeover of Credit Suisse, and fears of wider contagion throughout the financial system.

Notably, the Nasdaq on Wednesday closed 20% higher than its December low, marking the start of a new bull market.

Meanwhile, Friday data showed the core Personal Consumption Expenditures index, the Fed's preferred inflation gauge, clocked in cooler than expected last month. The measure, which excludes food and energy costs, rose 0.3% in February, while Dow Jones economists expected a 0.4% climb.

"Inflation is still moving in the right direction, and that should ease investors' minds," eToro US analyst Callie Cox said Friday. "Of course, this data was taken before banking issues popped up, so it should be taken with a grain of salt. But it does show that rate hikes are working, and that the Fed could have some room to lay off the brake."

Here's where US indexes stood as the market opened 9:30 a.m. on Friday: 

Here's what else is going on: 

In commodities, bonds, and crypto: 

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