The U.S. stock market closed higher on Thursday, with the Dow Jones Industrial Average jumping 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 gains came after President Trump eased tensions by not implementing new tariffs despite teasing significant trade policy changes earlier in the week.
According to Reuters, he suggested additional tariffs, including those on auto imports, may be on the way. A jump in big-name tech stocks also fueled Thursday’s gains. Nvidia gained about 3.2% after announcing it had shipped its first solution using Nvidia’s Blackwell chip.
Netflix, the best-performing U.S. tech stock last year, soared 24% on earnings. Apple rose 5.8%. Stocks rose further after the producer price index (PPI) release, a measure of what producers get for their goods and services.
The PPI reflected a 0.4% increase for January, higher than the Dow Jones consensus estimate of 0.3%. Core PPI, which excludes food and energy, was up 0.3% for the month, which is in line with forecasts. Despite the hotter number on the surface, the data did not change the Federal Reserve’s outlook on inflation.
The yield on the 10-year Treasury note fell about 10 basis points to 4.531% following the inflation data.
Tech stocks drive market gains
“A break below 4.5% would be a welcome sign for equity markets,” said Adam Turnquist, chief technical strategist at LPL Financial.
Casino stocks rose on Thursday after MGM Resorts posted a fourth-quarter earnings and revenue beat. MGM topped analysts’ estimates, reporting a boost from China and optimism over demand this year. Shares of MGM were trading nearly 18% higher, marking their best day since March 2020.
Fellow casino operators Wynn Resorts and Las Vegas Sands added 8% and 1%, respectively. Defense stocks fell after President Trump announced that defense spending could be reduced. Shares of Lockheed Martin, Raytheon, and Northrop Grumman each shed more than 1%, while General Dynamics lost 1.5%.
Cybersecurity firm SailPoint began trading on the Nasdaq on Thursday after going private two years ago. The company priced its shares at $23 each, trading at $23.03. Arm Holdings spiked nearly 8% on Thursday afternoon following a report that it plans to launch its own chip this year.
The semiconductor designer could unveil its first in-house-produced chip as early as this summer, and it has already secured a major customer. Shares of digital trading platform Robinhood jumped 11% following its stronger-than-expected fourth-quarter revenue of $1.01 billion. Apparel stock Hanesbrands fell around 18% after revenue missed expectations.
Shares of West Pharmaceutical Services plummeted nearly 34% after issuing softer-than-expected guidance for the year.
