Dow Industrials, S&P 500 and Nasdaq Composite Rise
Stocks traded higher Thursday as a rebound in some tech stocks offset a lack of enthusiasm that Wall Street had shown earlier in the session to softer-than-expected wholesale-inflation data.
The $Dow Jones Industrial Average(.DJI.US$ rose 107.8 points (0.3%) to trade at 38,568.59 shortly before 2:30 p.m. ET, while the $S&P 500 Index(.SPX.US$ added 46.87 ticks (0.9%) to 5,207.51.
Stocks rebounded from earlier red ink as shares of some popular tech names gained ground. For instance, $NVIDIA(NVDA.US$ and $Super Micro Computer(SMCI.US$ rallied.
That offset a lack of enthusiasm for a seemingly inflation-friendly March Producer Price Index released before the bell. The latest PPI report showed wholesale inflation rising 0.2% for the month – lower than the 0.3% analysts had expected. Still, the PPI's annual rate came in at 2.1%, its highest reading in a year.
The PPI numbers had failed to sooth investor concerns that sent stocks lower Wednesday after the March Consumer Price Index – which measures retail inflation -- came in at 3.5% vs. the 3.4% that analysts had expected.
Higher inflation could prevent the Fed from cutting its benchmark Federal Funds rate, a move many equities investors are hoping to see. Lower interest rates historically benefit stocks by making bonds and money-market funds less attractive.
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Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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