March's wage growth figures came in below what analysts had expected and that could bode well for companies struggling with rising labor costs.

Average hourly wages for private-sector workers grew 3.2% from a year earlier, a less robust rate than the prior month. Several companies have said rising labor costs have eaten into profit margins, putting pressure on corporate earnings as companies compete for workers.

The pullback in wage growth suggests such costs rising more gradually than expected, likely giving companies some slack. That could prove helpful ahead of 1Q earnings, which are set to contract for the first time since 2016.

"Even though job growth is strong, wage growth has moderated and doesn't appear to be picking up in such a way that we have to worry about inflation," said Brian Rose, a senior investment strategist at UBS Wealth Management Americas.