04:31 PM EDT, 03/22/2024 (MT Newswires) -- US equity indexes ended the week higher as government bond yields fell after investors interpreted the Federal Reserve's move to raise its forecast for inflation while maintaining the outlook for rate cuts this year as dovish.

* The Dow Jones Industrial Average closed Friday at 39,475.90, up from 38,714.77 a week earlier. The S&P 500 closed at 5,234.18, up from 5,117.16 a week earlier. The Nasdaq ended at 16,428.82 versus 15,973.17 a week earlier.

* Communication services and technology were among the top gainers this week, due partly to the Fed's relatively dovish lean. Further, Micron Technology's ( MU ) quarterly results underpinned the bullish AI outlook.

* The US Treasury 10- and two-year yields headed for a weekly decline late Friday, a positive for technology trade.

* Leaving rates unchanged at 5.25% to 5.5% for the fifth straight meeting, as expected, the Fed maintained its outlook for three rate cuts this year. But its updated Summary of Economic Projections showed price pressures at 2.6% versus 2.4% previously, Stifel said. The Fed's expectations for economic growth rose to almost 2% versus its prior 1.4% forecast. The Fed lowered its projection for the unemployment rate to 4% from 4.1%.

* The Fed signaled three rate cuts are "still on the agenda this year, despite upgrading their inflation forecasts," Deutsche Bank said. "Whether we get what is priced in is a moot point, but for the current direction of travel, the promise is all that matters for now."

* Deutsche Bank said the Swiss National Bank's surprise rate cut, making it the first major central bank to begin easing this cycle, helped market momentum. While the Bank of England kept rates on hold, none of its policymakers voted for an increase, for the first time since September 2021.

* Gold reached a record topping $2,200 an ounce following the Fed meeting. "The expectation of central banks starting to cut policy rates later this year will continue to underpin gold," Saxo Bank said.