(Update with final values; change label and author)
By Stephen Culp
NEW YORK, March 3 (Reuters) – Wall Street rose on Friday at the end of a volatile week as Treasury yields fell and economic data helped investors ignore the growing likelihood that the Federal Reserve would maintain its restrictive policy longer than expected.
* All three major Wall Street indexes rose, led by the Nasdaq, supported by interest-rate-sensitive mega-cap stocks. Treasury yields fell after comments from Federal Reserve officials eased inflation and rate fears.
* “Everything continues to revolve around the Federal Reserve and its ability to slow the economy,” said David Carter, managing director of JPMorgan Private Bank in New York. “The Fed is telling the markets what they want to hear, but also injecting a warning that rates may need to be raised based on economic data.”
* For the week, the indices posted gains, with the S&P posting a three-week losing streak and the Dow enjoying its first weekly gain since late January. During the week, the benchmark S&P 500 index moved above its 50- and 200-day moving averages, two closely watched technical levels.
* The U.S. services sector grew at a healthy pace in February, with new orders and employment hitting more than a year highs, suggesting the economy continued to expand in the first quarter.
* Offering stock markets a break on Thursday, Atlanta Fed Chairman Raphael Bostic said the impact of rising rates on the economy may not start to “bite” in earnest until this spring, a argument for the Fed to continue with a “stable” quarter -point hikes.
* Hardline comments from Federal Reserve policymakers and recent economic data have led traders to anticipate at least three more 25 basis point rate hikes this year and put interest rates in the 5.43 range % in September, compared to 4.66% currently.
* According to preliminary closing data, the Dow Jones Industrial Average rose 386.78 points, or 1.17%, to 33,390.35; while the S&P 500 gained 64.12 points, or 1.61%, to 4,045.47. The Nasdaq Composite rose 226.02 points, or 1.97%, to 11,689.01.
* Apple Inc closed higher after Morgan Stanley said the stock could rise more than 20% this year thanks to a possible hardware subscription. (Report by Sruthi Shankar in Bengaluru edited in Spanish by Javier López de Lérida)