Fresh inflation data, tech earnings trigger gains in US stocks

US stocks are advancing on Friday as investors digest the most recent inflation data, the PCE Index readings, amid the favourable earnings announcements from Microsoft and Alphabet. In March, the preferred inflation measure of the Federal Reserve rose 2.7% from the previous year, as anticipated.

The IT sector’s outstanding earnings were not even enough to cover persistent inflation, as the stock market rebounded on Friday afternoon. With 218 points, or 0.6%, gain, the Dow Jones Industrial Average was up. S&P 500 gains totaled 1.2%. Nasdaq Composite increased by 2.2%.

Shares of Alphabet rise as the parent company of Google reports better-than-expected earnings and declares its first cash dividend; Microsoft reports a 31% quarterly increase in Azure cloud computing revenue; and Exxon Mobil reports lower-than-expected earnings.

Following the release of the most recent inflation data, which was expected, bond prices increased and rates declined on Friday. A higher-than-expected number had alarmed traders. Bond yields fell, relieving traders who had been bracing themselves for a hotter-than-expected reading. The yield on the 2-year Treasury note fell to 4.985% from above 5% in previous trading. The yield on a 10-year note dropped to 4.653%. The yield on the 2-year Treasury note fell to 4.985% from above 5% in previous trading. The yield on a 10-year note dropped to 4.653%.