By Sruthi Shankar and Shristi Achar A
March 3 (Reuters) – U.S. stocks rose on Friday as Treasury yields paused after a week of gains on fears the Federal Reserve could keep interest rates high longer to contain persistent inflation.
* Wall Street indices had a volatile start to March after the latest economic data pointed to rising commodity costs and a resilient labor market, failing to show the impact the central bank wants from its tightening measures monetary.
* The yield on the 10-year U.S. Treasury was down on Friday after hitting a four-month high in the previous session, but was still above 4%.
* “What’s driving optimism despite the new data we’ve received relative to January is that investors remain open to a 25 basis point hike at the next Fed meeting,” Guido said. Petrelli, managing director of Merlin Investor.
* “Market volatility will continue in March until we have consistent data in terms of a slowing economy, but without raising fears of recession,” he added.
* 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.
* The Dow Jones Industrial Average rose 79.56 points, or 0.24%, to 33,083.13, while the S&P 500 rose 18.74 points, or 0.47%, to 4,000.09 . The Nasdaq Composite rose 72.54 points, or 0.63%, to 11,535.52.
* Nine of the S&P’s 11 major sectors rose, with the technology and communications services indexes leading the gains.
* Apple Inc gained 1.9% 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)