US stocks climb after inflation data shows prices cooled more than expected in March

Data on Wednesday showed the Fed is winning its fight against inflation a year after it embarked on a historically aggressive cycle of rate hikes.

• US stocks jumps on Wednesday after a key inflation reading for March. 
• The Fed's interest rate hikes are showing results as prices increases decelerate. 
• Still, inflation remains higher than the central bank's 2% target and core CPI showed a small increase last month. 

US stocks moved higher on Wednesday as traders take stock of the cooler-than-expected March inflation report. 

The consumer price index, a gauge of prices for goods and services in the US, rose 0.1% in March compared to economists' estimates of 0.2%, and was up 5% from a year earlier. The closely watched core CPI, which excludes more volatile food and energy prices, accelerated, up 5.6% on an annualized basis compared to 5.5% in February. 

Despite the overall drop in March, inflation remains elevated as the Federal Reserve tries to wrangle it down to its 2% target. However, the central bank's inflation battle is showing signs of progress as March's figures marked the slowest pace of price increases in nearly two years. 

Investors this week are also gearing up for the first-quarter earnings season to kick off on Friday, starting with Wall Street giants including Wells Fargo and JPMorgan. 

Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Wednesday:

• S&P 500: 4,129.30, up 0.5%
• Dow Jones Industrial Average: 33,846.69, up 0.48% (161.90 points)
• Nasdaq Composite: 12,105.81, up 0.61%

Here's what else is happening this morning:

• The biggest threat to the banking system is the central banks' rate-hike campaigns and geopolitical tensions, IIF chief warns.
• "Bond kings" Bill Gross and Jeffrey Gundlach are bracing for a credit crunchon surging borrowing costs and banking turmoil pose significant threats to lending.
• Big banks' balance sheets will likely grow after the recent turmoil. However, that could be bad news for ordinary Americans, ex-Barclays boss Bob Diamond says. 
•  The New York Federal Reserve president said there's no clear sign of a credit crunch in the US just yet.
• Economist David Rosenberg says more central bank rate hikes will be a mistake as inflation will come down regardless of the Fed's next move.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil rose 0.9% to $82.34 per barrel. Brent crude, oil's international benchmark, jumped 1% to $86.49.
• Gold rose 0.62% to $2,030.60 per ounce.
• The yield on the 10-year Treasury fell three basis point to 3.40%. 
• Bitcoin rose slightly to $30,216.03, while ether fell 1.33% to $1,892.