STORY: U.S. stocks rose on Thursday after new economic data reignited hopes that inflation will continue to trend lower.
The Dow Jones Industrial Average ended flat, while the S&P 500 ended three-quarters of a percent higher. And the Nasdaq soared nearly 1.7%.
The producer price index (PPI) was weaker than expected, confirming the view that inflation remains cool.
Just a day earlier, better-than-expected CPI data sent stocks plummeting and sent benchmark U.S. Treasury yields to their highest level since November.
PPI statistics were more encouraging, but showed that the decline in inflation may not be moving quickly toward the Fed's annual target rate of 2%.
Liz Miller, founder and president of Summit Place Financial Advisors, says investors may be focusing too much on individual data and not enough on the overall health of the economy. .
“Following this morning's PPI (Producer Price Index) release, I think investors are reconsidering how they have recently interpreted the CPI (Consumer Price Index) uptick information we received this month. We actually found that the market and the stock market may have overreacted to the decline. [FLASH] The economy is trending right, and these stocks are currently rebounding, reflecting investors becoming more cautious about long-term trends in the economy. ”
Tech momentum stocks led the way on Thursday, with Apple and Nvidia both ending the day up more than 4%.
CarMax shares fell 9% after the company said its fourth-quarter results missed analysts' expectations and the company may not meet its long-term auto sales goals.
Globe Life's stock price fell 53% after Fuzzy Panda Research disclosed short positions in the company, alleging multiple claims of insurance fraud.
And Rent the Runway's stock soared more than 160% after the apparel rental company announced it was betting on artificial intelligence to fuel growth this year.