Stocks Rise as Energy Swells Consumer Price Data
Published as of: April 10, 2026, 9:08 a.m. ET
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| The markets | Last price | Change | % change |
|---|---|---|---|
| S&P 500® Index | 6,824.66 | +41.85 | +0.62% |
| Dow Jones Industrial Average® | 48,185.80 | +275.88 | +0.58% |
| Nasdaq Composite® | 22,822.41 | +187.42 | +0.83% |
| 10-year Treasury yield | 4.29% | Unch | -- |
| U.S. Dollar Index | 98.71 | -0.10 | -0.11% |
| Cboe Volatility Index® | 19.19 | -0.30 | -1.54% |
| WTI Crude Oil | $97.52 | -$0.34 | -0.35% |
| Bitcoin | $72,545 | +$255 | +0.35% |
(Friday market open) For the second straight day, geopolitics stepped aside for inflation data as investors mulled the March Consumer Price Index (CPI). Stocks edged higher after headline CPI surged 0.9%, above the swollen 0.7% average estimate and dramatically up from 0.3% in February. However, core CPI, excluding food and energy, rose 0.2%, below the 0.3% consensus, as shelter and food prices remained in check. Annual figures also rose less than analysts had predicted.
"The rise in headline CPI was mostly attributable to higher energy prices" said Cooper Howard, director of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). "Energy rose 12.5% year over year. It was a hot report, but not as hot as expected."
Stocks rose Thursday on hopes the ceasefire can last. Talks take place this weekend between Iran and the U.S., while the Strait of Hormuz remains virtually closed. Shipping firms are wary of sending tankers through because insurance costs and Iran's tolls could limit profits. There's also caution on Wall Street, considering the fragile ceasefire and recent volatility. "There's so much short-term, short attention span money in the market that these whipsaw moves in both directions may be here to stay, at least near-term," said Liz Ann Sonders, chief investment strategist at SCFR, on the Schwab Network Thursday.
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Three things to watch
- Deeper dive into CPI: Annual headline CPI of 3.3% was just below the 3.4% consensus, while annual core CPI of 2.6% compared with consensus of 2.7%. Annual headline and core had been 2.4% and 2.5% in February. The headline figures for March reflected prices during the war after oil soared above $100 a barrel and U.S. gasoline prices climbed above $4 per gallon. Though an 18% monthly jump in gas prices sent headline CPI soaring even as core stayed in its lane, investors might not want to be sanguine. "There's a lag between oil prices and core inflation," Howard said. "The longer oil stays elevated. the greater the likelihood that it filters into core CPI." Speaking of gasoline prices, the U.S. stock market remains tightly correlated to the price of oil, though that relationship didn't seem quite as prevalent yesterday and the S&P 500 Index is on track for its second straight positive week after falling five weeks in a row.
- Bank earnings: Goldman Sachs (GS) kicks off big bank reporting early Monday, followed by a host of large and small banks throughout the week. Analysts expect a lot from banks this earnings season but may want to focus on forward guidance and executives' comments in this uncertain economic environment. The war, private credit concerns, and economic growth worries spooked bank sector investors last quarter, sending the KBW Nasdaq Bank Index (BKX) down roughly 11% over the past two months. Still, Wall Street largely remains bullish on both banks and the broader financials sector. Analysts polled by FactSet expect the S&P 500 financials sector to deliver 15.1% year-over-year earnings growth in the first quarter. The sector delivered just 6% year-over-year earnings growth during the same period a year ago. For many banks, trading revenues and net interest income (NII) remain the core drivers of earnings results. NII had been growing, but there are signs the trend could be slowing as the yield curve narrows. The banks' capital markets activity—including initial public offerings trends—is also in focus.
- Powell presence could be extended: There's only one historic precedent for a Federal Reserve chairman staying on as a governor after his term ends. And that happened in 1948. But Fed Chairman Jerome Powell might do it because it would block President Trump from the opportunity to nominate someone new to fill a vacancy. Powell—whose term as chairman expires next month but whose term as governor lasts until 2028—was asked about this at his news conference last month. He replied that he had no intention of leaving the board until the criminal investigation into his role in the Fed's building renovation is "well and truly over, with transparency and finality." Then, when asked whether he might stay on until the end of his term as governor, he said that he hadn't decided but that he would do what he thinks is "best for the institution and the people it serves." Investors were left to read the tea leaves, but to some, things appear clear. "That sounds to me a lot like someone who plans to stick around for a while," said Michael Townsend, managing director of legislative and regulatory affairs at Schwab, in his latest Washington Wise update. In related news, the Senate Banking Committee delayed a confirmation hearing for Kevin Warsh, Trump's nominee to succeed Powell, that had been scheduled next week.
On the move
- Taiwan Semiconductor Manufacturing (TSM) edged up 2.3% early today after reporting a 35% rise in first quarter revenue that exceeded analysts' forecasts and likely reflected sustained demand from key customers like Apple (AAPL) and Nvidia (NVDA) despite the war. TSM reports full quarterly results next week.
- Several other chip firms climbed Friday following TSM's report as the news reinforced ideas that demand remains strong industry-wide. Shares of CoreWeave (CRWV), Marvell Technology (MRVL), Arm Holdings (ARM), and ASML (ASML) all climbed 1.5% or more. ASML, a key manufacturer of equipment used in chip manufacturing, reports next week.
- CoreWeave's rally also might reflect its announcement of a multi-year agreement with AI firm Anthropic, which will use CoreWeave's cloud platform to run workloads at production scale.
- Lumentum (LITE) jumped 5% after Bloomberg reported the company is seeing strong AI-related demand and JPMorgan Chase raised its price target.
- Shares of Shake Shack (SHAK) rose nearly 3.5% this morning following an upgrade from Mizuho to outperform from neutral. The firm's research points to possible upside in same-store sales growth.
- ServiceNow (NOW) slipped another 2% this morning following a nearly 8% drop yesterday. It's been downgraded to neutral from buy at UBS, which says it's no longer confident that ServiceNow is better positioned for the AI era relative to other application software names.
- Amazon (AMZN) climbed sharply Thursday after announcing new investments in data centers and saying its custom chip business is strong, while Meta Platforms (META) gained for the second straight day on its $21 billion AI infrastructure deal with CoreWeave and Wednesday's announcement of its AI model.
- SanDisk (SNDK) rose 9% Thursday after an analyst raised his price target on the semiconductor stock. Shares climbed again this morning.
- Retail firms Lululemon (LULU), Ralph Lauren (RL), Macy's (M), and Under Armour (UAA) performed well on Thursday. Solid earnings and guidance earlier this week from Levi Strauss (LEVI) might be a factor.
- Crypto-related firm Circle Internet Group (CRCL) plunged 9% Thursday on a downgrade from Compass Point.
- Chances of a pause at this month's Fed meeting remained near 100%, according to the CME FedWatch Tool, following today's data. Chances of at least one cut this year are near 35%, up slightly from yesterday.
More insights from Schwab
Volatility extends to bonds: Though stock market swings grab headlines, the bond market is also volatile, noted Collin Martin, head of fixed income research and strategy at SCFR, in this week's On Investing podcast also featuring Sonders. Martin doesn't expect yields to rise or fall much further from here, as the Fed appears on hold for an extended period.
April market snapshot: In a separate video, my colleague Sonders shared her thoughts on the stock market and the U.S. economy. This time, the episode focuses on the important distinction between investing and gambling.
Options strategy with a catchy name: "Iron condors" is a popular four-leg, defined-risk options strategy made up of one bullish and one bearish spread. Rather than attempting to predict if an underlying security will rise or fall, traders use iron condors to speculate on how much—or how little—the underlying security's price will move over time. Learn more in my latest options trading story.
Chart of the day
S&P Dow Jones Indices
Last month, the number of S&P 500 stocks trading above their 50-day moving averages ($SPXA50R) fell below 18%, well below this year's peak of 74%. Still, it wasn't as bad a dip for this category as during last year's tariff selloff, when it fell to 4%. It jumped quickly late this week to 48%. The average level for this metric over the last 200 trading days (blue line) is 55%. Regular readings earlier this year of 60% to 70% indicated broad improvement in stocks across many sectors, a healthy climate.
The week ahead
Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.
April 13: Expected earnings from Goldman Sachs (GS), March existing home sales.
April 14: March PPI, March core PPI, and expected earnings from JPMorgan Chase (JPM), Johnson & Johnson (JNJ), Wells Fargo (WFC), Citigroup (C), BlackRock (BLK).
April 15: Expected earnings from ASML (ASML), Bank of America (BAC), Morgan Stanley (MS), Progressive (PGR), PNC Financial (PNC), and JB Hunt Transport (JBHT).
April 16: March industrial production and expected earnings from Taiwan Semiconductor Manufacturing (TSM), PepsiCo (PEP), Abbott Laboratories (ABT), Prologis (PLD), Marsh & McLennan (MRSH), Bank of New York Mellon (BK), U.S. Bancorp (USB), Travelers (TRV), Infosys (INFY), Netflix (NFLX), and Alcoa (AA).
April 17: March housing starts and building permits and expected earnings from Truist Financial (TFC), Fifth Third Bancorp (FITB), and State Street (STT).