U.S. stocks rose on Thursday as new inflation data and updates on tariff plans eased some concerns around inflationary pressures and global trade tensions. The Dow Jones Industrial Average jumped 342.87 points, or 0.77%, to 44,711.43. The S&P 500 climbed 1.04% to 6,115.07, and the Nasdaq Composite advanced 1.50% to 19,945.64.
The Dow hit session highs after President Trump hinted at major trade policy changes but held off on implementing any new levies after teasing additional tariffs on auto imports. A jump in big-name tech stocks fueled Thursday’s gains. Nvidia, the best-performing U.S. tech stock last year, soared 24% on earnings.
The company announced it shipped its first solution using Nvidia’s Blackwell chip, which boosted investor confidence. Amazon rose 5.8%. Stocks responded positively to the release of the producer price index, a measure of what producers get for their goods and services.
The index reflected a 0.4% increase for January, higher than the Dow Jones consensus estimate of 0.3%. Despite the hotter number on the surface, the latest PPI report and Wednesday’s consumer price index data indicated a manageable inflation outlook, bolstering market sentiment. Adam Turnquist, chief technical strategist at LPL Financial, said, “The components that feed into PCE is, I think, where we’re getting the celebration today.
That’s helping bring yields down a little bit as well. We’re watching 4.5% as the line in the sand for this upturn that’s been in place since September. A break below that would be a welcome sign for equity markets.”
Casino stocks rose on Thursday after casino operator MGM posted a fourth-quarter earnings and revenue beat.
Stocks rise on easing inflation concerns
MGM topped analysts’ estimates on both the top and bottom lines, reporting a boost from its operations in China and optimism over demand so far this year. Shares of MGM were last trading nearly 18% higher, on pace for their best day since March 2020.
Other casino stocks, including Wynn Resorts and Las Vegas Sands, also recorded gains. Shares of several defense stocks slipped after President Trump said Thursday afternoon that defense spending could be reduced. Lockheed Martin, Raytheon, and Northrop Grumman each shed more than 1% shortly after the announcement, while General Dynamics lost 1.5%.
Trump also mentioned potential discussions with China and Russia on reducing military spending and denuclearization. The MSCI India Index inched down around 0.2% Thursday, putting it down 3.1% week to date. The pullback comes amid Indian Prime Minister Narendra Modi’s visit to Washington, D.C., where he and President Trump are expected to hold a joint press conference.
When signing the executive order for U.S. reciprocal tariffs on Thursday, Trump stated, “India has more tariffs than any other country.” The U.S. recorded a $45.7 billion trade deficit with India in 2024, according to data from the Census Bureau. Cybersecurity firm SailPoint began trading on the Nasdaq on Thursday after going private two years ago. The company priced its shares for its initial public offering at $23 each.
Shares were last traded around its IPO price at $23.03. Arm Holdings spiked nearly 8% Thursday afternoon following reports that the semiconductor designer plans to launch its own chip this year. Arm could unveil its first in-house produced chip as early as this summer, sources familiar with the matter said.
The move could impact some of the biggest players in the semiconductor industry, currently valued at around $700 billion.
