US Stocks Surge on Tariff and Inflation News
Market Overview
US stocks rallied on Thursday as investors weighed President Donald Trump's plans for reciprocal tariffs and a report indicating rising inflation. The Dow Jones Industrial Average gained 0.3%, while the S&P 500 jumped 0.6% and the Nasdaq Composite soared 1.1%. Tech stocks led the gains, with Nvidia and Tesla posting significant gains.
Tariff Announcement Expected
President Trump announced his intention to introduce reciprocal tariffs later on Thursday. The move aims to target countries imposing tariffs on US imports, potentially impacting global trade relations.
Inflation Concerns Mount
Data released showed wholesale inflation remains elevated, adding to concerns about the Federal Reserve's ability to control inflation. The Producer Price Index rose 0.4% in January, exceeding expectations.
Earnings Season Continues
Earnings season continues, with solid results reported by many S&P 500 companies. Robinhood shares surged after beating fourth-quarter profit estimates, while Reddit's stock tumbled due to missed user growth targets.
Tech Sector Outperforms
Tech stocks led the rally, with Nvidia gaining 3% and Tesla jumping 4%. Apple also gained over 1%, while Meta pared modest gains.
Oil Prices Dip on Ukraine Peace Efforts
Oil prices initially dipped following reports of peace efforts in Ukraine. However, losses were later pared as traders assessed the potential impact of retaliatory US tariffs on global economic growth and oil demand.
Musk Withdraws OpenAI Bid
Elon Musk has threatened to withdraw his $97.4 billion bid for OpenAI if its board halts the transformation of the ChatGPT maker into a for-profit enterprise.
Economic Data in Focus
Economic data releases this Thursday include the Producer Price Index for January and initial jobless claims for the week ending February 8th.