* March CPI rises 3.3%, in line with estimates
* Consumer sentiment tumbles to record low
* CoreWeave ( CRWV ) gains after deal with Anthropic
*
(Updates to market close)
By Stephen Culp and Purvi Agarwal
NEW YORK, April 10 (Reuters) - U.S. stocks closed mixed
on Friday, with investors pressing pause as they headed into the
weekend and kept an eye on ongoing Middle East peace
negotiations.
A closely watched inflation report showed consumer price
growth accelerated as expected, due to price pressures arising
from the war on Iran.
The Dow and the S&P 500 ended lower, while tech stocks
boosted the Nasdaq to gains on the session as
investors assessed unfolding developments in the Middle East.
The fragile two-week truce has been threatened by claimed
violations of the ceasefire. These included Israel's continued
bombardment of Lebanon, even as Israeli Prime Minister Benjamin
Netanyahu said he was seeking direct talks with Beirut.
The vital Strait of Hormuz was kept closed by Iran, which
demanded a ceasefire in Lebanon and the unfreezing of assets as
a condition to resuming negotiations.
The week began on an ominous note, with U.S. President
Donald Trump threatening to destroy "an entire civilization" if
Iran failed to comply with his demands. But as a truce began to
take shape, stocks rallied.
All three indexes scored weekly gains.
"Traders are pretty hesitant to have exposure going into a
long weekend where there's going to be an Iran-U.S.
negotiation," said Jed Ellerbroek, portfolio manager at Argent
Capital Management in St. Louis, Missouri. "Investors are
expecting a lot of news and the market being closed for 2-1/2
days is a long time for things to change."
"For that reason, there is this recent trend over the last
month-and-a-half, where the market does well on Mondays,
Tuesdays, and Wednesdays, and it does poorly on Thursdays and
Fridays," Ellerbroek added.
The Labor Department's consumer price index (CPI), the first
major inflation indicator released since the onset of the war,
showed consumer prices logged their largest monthly jump in
nearly four years due to an expected spike in energy prices,
which prompted a 21.2% surge at the gasoline pump.
Core CPI, which strips out food and energy, was cooler than
analysts anticipated. Still, the shock from spiking crude prices
is likely to be felt more acutely in the coming months.
On Thursday, San Francisco Fed President Mary Daly told
Reuters the oil shock from the Iran war would extend the
timeline on bringing inflation back to the U.S. central bank's
2% target.
A separate report from the University of Michigan showed
consumer sentiment plunged this month to a record low, while
near-term expectations dropped to their lowest level since May
1980.
According to preliminary data, the S&P 500 lost 6.76
points, or 0.10%, to end at 6,817.90 points, while the Nasdaq
Composite gained 78.64 points, or 0.35%, to 22,901.06.
The Dow Jones Industrial Average fell 282.62 points, or
0.59%, to 47,903.18.
Chipmakers took the lead, touching a record high.
Financial stocks underperformed ahead of major U.S.
banks posting earnings next week, marking the unofficial start
of first-quarter reporting season. Analysts currently predict
aggregate year-on-year S&P 500 earnings growth of 13.9%,
according to LSEG.
"Hopefully earnings season might switch at least some of the
narrative back to corporate fundamentals, which is really what
the stock market's all about," said Tim Ghriskey, senior
portfolio strategist at Ingalls & Snyder in New York.
U.S.-listed shares of Taiwan Semiconductor Manufacturing ( TSM )
, the world's largest contract chipmaker, rose after it
beat first-quarter revenue forecasts.
CoreWeave ( CRWV ) surged following its announcement of a
multi-year agreement with Anthropic.