US Stocks Trade Higher Amid Tariff News and Inflation Data

Key Points:

* US stocks gained on Thursday following President Trump's announcement of reciprocal tariffs.
* Investors also weighed in stronger-than-expected inflation data.
* The PPI rose 0.4% in January, exceeding economists' forecasts.
* The Dow Jones Industrial Average increased by 0.3%, while the S&P 500 gained 0.2%.
* The tech-heavy Nasdaq Composite climbed by 0.3%.

Tariff Announcement

President Trump indicated plans to impose reciprocal tariffs targeting countries that levy duties on US products. These tariffs could escalate global trade tensions.

Inflation Data

The Producer Price Index (PPI), a measure of wholesale prices, showed a 0.4% increase in January, above the expected 0.3%. This highlights the ongoing challenge the Federal Reserve faces in controlling inflation.

Market Outlook

* Markets are assessing the potential impact of the proposed tariffs and the inflation data.
* Investors are also monitoring the Ukraine war and the possibility of peace talks.
* Corporate earnings season continues, with mixed results from Robinhood and Reddit.
* Airbnb, Applied Materials, and Coinbase are among the companies reporting Thursday after the bell.