Stock Market Today: Inflation Data Fuels End-of-Quarter Pop in Stocks
A solid showing for tech and communication services stocks pushed the Nasdaq to its best quarter since 2020.

Stocks started Friday on a high note thanks to encouraging inflation data. The buying power only strengthened as the session wore on, with all three major indexes extending their weekly and monthly gains.
Tech and communication services stocks once again helped lead markets higher – and propelled the Nasdaq Composite to its biggest quarterly gain in nearly three years.
The Bureau of Economic Analysis said this morning that its personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation that tracks consumer spending, rose 0.3% month-over-month in February, and was up 5% year-over-year. This was lower than the increases seen in January. Core PCE, which excludes volatile food and energy prices, also rose at a slower pace, on both a monthly and annual basis.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
As for what this means for the next Fed meeting? It's a near-tossup, says Bill Adams, chief economist for Comerica Bank. "Forward-looking information like layoff announcements and recent banking headlines suggest a pause in rate hikes may be appropriate, while backward-looking information like recent jobs, consumer spending, and inflation data support another hike."
Also in economic news, the University of Michigan downwardly revised its March consumer sentiment index (62.0 vs preliminary reading of 63.4), which was markedly lower than February's reading of 67.0. This was also the fourth straight monthly decline for the index.
"This month's turmoil in the banking sector had limited impact on consumer sentiment, which was already exhibiting downward momentum prior to the collapse of Silicon Valley Bank," the report stated. "Overall, our data revealed multiple signs that consumers increasingly expect a recession ahead."
Looking at today's single-stock movers, right-wing media platforms Rumble (RUM, +7.1%) and Digital World Acquisition (DWAC, +7.6%) were two notable gainers after last night's news that former President Donald Trump was indicted by a grand jury in Manhattan. Rumble also reported fourth-quarter results that included a sharp year-over-year rise in revenue (to $19.9 million from $2.9 million) and a monthly active user count that more than doubled from the year-ago period.
At the close, the Nasdaq was up 1.7% at 12,221, the S&P 500 rose 1.4% to 4,109, and the Dow Jones Industrial Average gained 1.3% to 33,274. All three benchmarks scored impressive weekly and monthly gains too. As for their Q1 performances, the Nasdaq finished the quarter up 16.8% – its biggest quarterly gain since Q2 2020, when it jumped 30.6% – the S&P 500 was 7.0% higher, and the Dow added 0.4%.
Don't give up on stocks
It was a wild first quarter for the equities market. "An early year stock rally fueled by hopes of a Fed pause proved short-lived," says Tony DeSpirito, chief investment officer at BlackRock's U.S. Fundamental Active Equities. "The first spoiler – hotter-than-expected inflation data – was followed by signs that rate hikes are having an economic impact as cracks emerged in the banking system." Going forward, those two counterforces "make the Fed's job more complicated as it becomes increasingly clear that taming inflation might not only incite recession but could also rock financial stability."
So what does this mean for investors? Don't give up on stocks, DeSpirito says, as they "continue to play a critical role in a long-term investment plan." Picking the best stocks to buy must include a focus on quality companies, like the best dividend growth stocks that are "built to weather diverse markets," he adds. Stable sectors are also solid additions to portfolios, DeSpirito says, with healthcare stocks in particular known for being recession resilient.
With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
-
New Mexico Rebate Checks Up to $1,000 Coming in June
New Mexico rebate checks will be sent soon. Here's what you should know.
By Katelyn Washington • Published
-
Should Graduates Spend or Save Their Gift Money? 14 Strategies to Consider
Financial experts share tips for deciding how to treat monetary gifts.
By Kiplinger Advisor Collective • Published
-
Stock Market Today: Stocks Close Lower Ahead of Key Debt Ceiling Vote
The major benchmarks spent most of Wednesday in the red as the House prepares to vote on the debt ceiling deal this evening.
By Karee Venema • Published
-
Stock Market Today: Stocks Give Back Big Debt Ceiling Deal Gains
The major benchmarks opened solidly higher Tuesday after lawmakers announced a debt ceiling deal, but optimism faded into the close.
By Karee Venema • Published
-
Stock Market Today: Stocks Jump on Debt Ceiling Progress
The major benchmarks rallied into the long weekend after lawmakers said they're making strides in debt ceiling negotiations.
By Karee Venema • Published
-
Stock Market Today: Stocks Rise After AI Outlook Sparks Explosive Nvidia Rally
The Nasdaq and S&P 500 made impressive advances today after chipmaker Nvidia forecast record quarterly revenue on AI growth.
By Karee Venema • Published
-
Is Nvidia Stock Just Getting Started?
Nvidia stock has more than doubled this year already, but analysts say explosive growth in AI gives NVDA plenty more upside ahead.
By Dan Burrows • Last updated
-
Stock Market Today: Stocks Sink on Debt Ceiling Impasse
While the major benchmarks finished in the red, retail stocks Abercrombie & Fitch and Kohl's popped after earnings.
By Karee Venema • Published
-
Debt Ceiling Crisis: What Did Stocks Do the Last Time the U.S. Nearly Defaulted?
Playing chicken with the debt ceiling has been bad for stocks in the past.
By Dan Burrows • Last updated
-
Stock Market Today: Debt Ceiling Anxiety Weighs on Stocks
While a Monday night meeting between Biden and McCarthy was "productive," there are no signs the two sides are nearing a deal.
By Karee Venema • Published