NEW YORK, April, 1: US stocks ended the quarter on a down note on Friday as a drop in crude oil prices drove energy shares down and offset the positive influence of data showing tame US inflation and healthy economic growth. But all three major stock indexes had their best first quarter performance in at least four years, defying the dampening effect of continued interest-rate increases by the Fed.

Shares of ConocoPhillips, the No. 3 US oil company, and Exxon Mobil Corp., the world’s largest publicly traded oil company, along with Schlumberger Ltd., the world’s largest oil field services company, were among the top drags on the S&P 500 Index.

Stocks initially rose in morning trading after a core inflation gauge for February and a Federal Reserve official’s comments eased concerns about the outlook for interest rate increases. Stronger-than-expected consumer sentiment data added to the optimistic mood.

Considering the Fed has continued to signal that they’re not finished raising interest rates, the market has done better than people would have expected in that environment, said John Forelli, senior vice president of Independence Investment LLC in Boston.

The Dow Jones industrial average fell 41.38 points, or 0.37 per cent, to end at 11,109.32. The Standard & Poor’s 500 Index slipped 5.42 points, or 0.42 per cent, to 1,294.83. The Nasdaq Composite Index declined 1.03 point, or 0.04 per cent, to 2,339.79.

Despite the day’s declines, the Dow industrials had their best first quarter since 2002. The S&P 500 had its biggest first-quarter gain since 1999 and the Nasdaq had its best quarter since the Internet bubble burst in 2000.

US crude oil for May delivery dropped 52 cents to settle at $66.63 a barrel. Supply concerns in Iran and Nigeria have helped drive oil prices to nearly two-month highs this week.

ConocoPhillips shares fell 2.1 per cent, or $1.33, to $63.15, while Exxon Mobil lost 0.4 per cent, or 26 cents, to $60.86 and Schlumberger’s stock shed 1.3 per cent, or $1.66, to $126.57. Chevron Corp. shares fell 0.9 per cent, or 54 cents, to $57.97 on the New York Stock Exchange. —Reuters