12:23 PM EDT, 04/26/2024 (MT Newswires) -- US equity indexes rose after the Federal Reserve's preferred measure of inflation in March met market expectations and as quarterly earnings from technology heavyweights lifted investor sentiment.

The S&P 500 climbed 1.1% to 5,102.3, with the Dow Jones Industrial Average 0.5% higher at 38,269.5 and the Nasdaq Composite up 2% to 15,931.3 Communication services, technology, and consumer discretionary led the gainers intraday. The energy sector was the steepest decliner.

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 4.5 basis points to 4.66%, and the two-year rate slid 1.1 basis points to 4.99%.

In company news, Alphabet (GOOG, GOOGL) jumped 10% intraday, the highest return on the Nasdaq, after the owner of the Google ( GOOG ) search engine reported a surge in Q1 earnings and revenue. The company said its board approved its 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.

West Texas Intermediate crude oil rose 0.6% to $84.05 a barrel.