U.S. stocks are rising after inflation data boosts hopes for Fed pause

As a crucial inflation figure came in lower than anticipated, U.S. equities were up.

The Dow Jones Industrial Average was up 171 points, or 0.5%, at 10:01 ET (14:01 GMT), while the S&P 500 and the NASDAQ Composite were also higher.

The Federal Reserve constantly monitors the personal consumption expenditure index, which increased 0.3% in February compared to January, according to the Commerce Department’s inflation report. It fell short of expectations.

Core PCE prices increased 4.6% for the year ending in February, matching the lowest level seen since the end of 2021.

The Fed has stated that it is keeping an eye on the statistics as it determines the next course of action for interest rates as it works to control inflation. When it meets again in May, softer inflation data and a still-tight job market will be important considerations. On whether to bet on a pause or a quarter-point rate, futures traders are split equally.

The first quarter is coming to a conclusion today, capping a choppy three months for stocks. The S&P 500 is up over 6% despite a damaged banking sector, while the Nasdaq is on course for its greatest quarterly percentage gain since the end of 2020.

In the first quarter, the KBW Regional Banking Index fell by 19.9%.

Shares of Virgin Orbit Holdings Inc, the commercial satellite launch business owned by billionaire Richard Branson, dropped 40% after the firm said it would be firing the majority of its employees due to a lack of funds.

After pricing a sale of $100 million in stock at 20% below Thursday’s closing price, Nikola Corp.’s stock fell 15%.

Oil was increasing. Brent Oil Futures increased by 0.8% to $79.28 per barrel while Crude Oil WTI Futures increased by 1.1% to $75.19 per barrel. At $1,998, gold futures were unchanged.