Apple and other tech stocks led gains in U.S. stocks on Thursday, following mixed inflation data and a decision by the European Central Bank that hinted at the possibility of an imminent rate cut.
U.S. wholesale inflation rose 0.2% in March, slightly lower than expected. However, on an annual level, the final demand index rose 2.1% in the 12 months to March, the highest level since April 2023.
Ventura Wealth Management's Tom Cahill said investors' “relief” that the inflation report was “less bad than expected” was driving stock prices higher after Wednesday's consumer price data sent stocks plummeting. He said that it is a reflection of the
The Dow Jones Industrial Average ended flat at $38,459.08.
The broad-based S&P 500 index rose 0.7% to 5,199.06, while the tech-heavy Nasdaq Composite Index rose 1.7% to 16,442.20.
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Apple soared nearly 4% after a JPMorgan Chase & Co. report pointed to improving investor sentiment for the company, in part because the iPhone would benefit from upgrades with more AI technology. It was enthusiasm.
Chip companies also had a strong day, with Nvidia, Broadcom and Micron all posting gains of more than 4%.
The European Central Bank kept interest rates on hold again as expected, but said slowing inflation could open the door to monetary easing, raising hopes of a first rate cut in June.
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Investors are keeping an eye on Friday's results for major banks. JPMorgan Chase was flat, Wells Fargo fell 0.4% and Citi rose 0.9%. All three will report on Friday.
JMB/BFM