NEW YORK, April 11 (Xinhua) -- U.S. stocks ended mixed on Thursday, as tech shares climbed higher managing to rebound from an earlier pullback over concerns of persistent inflation.
The Dow Jones Industrial Average fell by 2.43 points, or 0.01 percent, to 38,459.08. The S&P 500 added 38.42 points, or 0.74 percent, to 5,199.06. The Nasdaq Composite Index increased by 271.84 points, or 1.68 percent, to 16,442.2, scoring its 6th record close of the year.
Six of the 11 primary S&P 500 sectors ended in red, with financials and health leading the laggards by losing 0.58 percent and 0.49 percent, respectively. Meanwhile, technology and communication services led the gainers by rising 2.36 percent and 1.14 percent, respectively.
The U.S. producer price index (PPI) in March increased by 0.2 percent compared to February, falling short of economists' average forecast of a 0.3 percent rise and lower than February's 0.6 percent growth. Year on year, the PPI went up by 2.1 percent, according to the Bureau of Labor Statistics on Thursday.
This data comes after Wednesday's consumer price index showed higher-than-expected inflation. These numbers may influence the Federal Reserve's stance on interest rates, with the probability of a rate cut in June dropping to below 20 percent from 60 percent last week, according to the CME FedWatch tool.
New York Fed President John Williams said during an event Thursday that there is no need for a policy change in the near term.
"Recent data suggest it may take more time than I had previously thought to gain greater confidence in inflation's downward trajectory, before beginning to ease policy," Boston Fed President Susan Collins said at a different venue in New York, adding that a strong labor market "also reduces the urgency to ease."
"The inflation data are noisy, and the market reflects that reality. There are clear signs of disinflation in lots of places, but the last mile of the inflation fight is going to be the most difficult," said Jamie Cox, managing partner at Harris Financial Group. He also argues that investors should pay attention to earnings instead of rate cuts, "What people forget is the rate cuts aren't required for the market to rise. Earnings are."
Tech stocks pushed the S&P 500 and Nasdaq Composite higher. Nvidia surged 4.11 percent, joining other top tech performers like Amazon and Alphabet, which gained 1.67 percent and 2.09 percent, respectively. Amazon reached a new peak in share value, while Apple surged 4.33 percent marking its strongest performance of 2024 so far.
