01:34 PM EDT, 04/26/2024 (MT Newswires) -- US equity indexes jumped intraday Friday after the Federal Reserve's preferred measure of inflation in March met market expectations and quarterly earnings from technology heavyweights lifted investor sentiment.

The S&P 500 climbed 1.2% to 5,108.4, with the Dow Jones Industrial Average 0.6% higher at 38,295.2 and the Nasdaq Composite up 2.2% to 15,950.7 Communication services, technology, and consumer discretionary led the gainers intraday. The energy sector had the steepest decline.

In economic news, the personal consumption expenditures price index rose 0.3% for a second straight month, in line with expectations, lifting the year-over-year rate to 2.7% from 2.5% in February. The core PCE price index also increased 0.3% for the second consecutive month, in line with forecasts. The year-over-year rate remained at 2.8%, according to the Bureau of Economic Analysis Friday.

The University of Michigan's consumer sentiment index was revised downward to 77.2 for April from 77.9 in the preliminary estimate, compared with expectations for no revision in a survey compiled by Bloomberg. Respondents expected a 3.2% inflation rate over the next year and 3% annual inflation over the next five years, faster than 2.9% and 2.8%, respectively, in March.

The US 10-year Treasury yield dropped 3.5 basis points to 4.67%, and the two-year rate slid less than one basis point to 4.99%.

According to the CME Group's FedWatch Tracker, the probability of the Federal Reserve holding rates in July decreased to 67% as of Friday afternoon from 68% a day before. The likelihood of the Fed extending the pause in September fell to 40% from 42% on Thursday.

In company news, Alphabet (GOOG) jumped 10% intraday, the highest return on the Nasdaq, after the company reported a surge in Q1 earnings and revenue. The company's board also approved a quarterly cash dividend program and buyback of up to $70 billion in additional shares.

Microsoft ( MSFT ) , late Thursday, reported Q3 net income and revenue above market expectations. Shares jumped 3.1%, the top gainer on the Dow.

ResMed ( RMD ) reported late Thursday fiscal Q3 non-GAAP earnings and revenue grew faster than the market had forecast. Shares surged almost 19% intraday, the top gainer on the S&P 500.

Intel ( INTC ) forecast non-GAAP earnings of $0.10 per share on revenue of between $12.5 billion and $13.5 billion for Q2. Analysts polled by Capital IQ expect earnings of $0.26 on sales of $13.59 billion. Intel ( INTC ) shares sank nearly 10% intraday, the worst performer on the S&P 500, the Nasdaq, and the Dow.

West Texas Intermediate crude oil rose 0.4% to $83.89 a barrel.

Gold rose 0.2% to $2,346.5 per ounce, while silver fell 0.4% to $27.25.

Price: 173.66, Change: +15.71, Percent Change: +9.95