US Stocks Rise Despite Tariffs and Inflation Report
US stocks surged higher on Thursday after President Donald Trump announced plans to introduce reciprocal tariffs later in the day. Meanwhile, investors weighed the impact of a report indicating a re-emergence of inflationary pressures.
The Dow Jones Industrial Average (DJI) gained 0.3%, while the S&P 500 (GSPC) rose 0.6% after declining on Wednesday. The tech-heavy Nasdaq Composite (IXIC) climbed over 1%, driven by gains in Nvidia (NVDA) and Tesla (TSLA).
Markets eagerly await the announcement of Trump's proposed tariffs, which are expected to be announced at 1 p.m. ET. The tariffs could target nations that impose levies on US imports.
Separately, the Producer Price Index (PPI) for January showed that wholesale inflation remained elevated, following a similar trend in the Consumer Price Index (CPI). However, within the data, economists identified potential signs of easing price increases in January.
Following the PPI release, the 10-year Treasury yield fell, alleviating pressure on stocks. The likelihood of the Federal Reserve holding interest rates steady through July also decreased.
In the technology sector, Nvidia and Tesla led the gains. Nvidia shares surged over 3%, while Tesla rose more than 4%, extending its rally from the previous session. Apple (AAPL) also gained over 1%.
Shares of Meta (META) fluctuated, eventually closing lower. Despite this, the company remains on track for its eleventh high of the year, with the potential for a 19-day win streak.
Oil prices retreated as the market discounted peace efforts in Ukraine. Meanwhile, Elon Musk threatened to withdraw his $97.4 billion bid for the nonprofit that oversees OpenAI if its directors halt the transformation to a for-profit enterprise.