S&P 500 rebounds slightly from sell-off as sticky inflation keeps investors on edge: Live updates

The S&P 500 climbed higher Thursday, managing to shake off concern over persistent inflation.

The broad market index rose 0.9%. The Nasdaq Composite added 1.6%, and the Dow Jones Industrial Average added 130 points, or 0.3%.

Technology stocks lifted the S&P 500 and Nasdaq Composite into positive territory midday Thursday as investors bought into the dip from earlier in the week. Nvidia jumped more than 3% Thursday. Some other “Magnificent Seven” members, including Amazon and Alphabet, advanced 1.7%. Broadcom and Super Micro Computer gained around 4%.

The Dow and S&P 500 are on pace to end the week lower by 1.1% and 0.3%, respectively. Meanwhile, the tech-heavy Nasdaq is up 0.6% for the week.

The producer price index reading for March came in below estimates, providing some relief after Wednesday’s sell-off on a faster-than-expected rise in prices for consumer goods and services. Wholesale prices rose 0.2% in March, while economists polled by Dow Jones expected 0.3% growth. Core CPI, which excludes food and energy, increased 0.2%, in line with forecasts. However, on a yearly basis, wholesale prices jumped 2.1%, the highest level since April 2023.

“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, referring to the Federal Reserve’s ultimate goal of reaching 2% inflation.

Meanwhile, New York Fed President John Williams said during an event Thursday that there is no need for a policy change in the near term.

This comes on the back of a hotter-than-expected March consumer price index reading released Wednesday, which sparked a market sell-off. Minutes from the Fed’s meeting last month also showed that some officials remain concerned about inflation’s path toward the central bank’s 2% goal. Treasury yields popped following the news. They rose again on Thursday, with the 10-year Treasury note yield holding above 4.5%.

“The market’s perception on inflation has changed. We’re seeing more confirmation that inflation isn’t quite so easy to bring down into submission,” said Melissa Brown, managing director of applied research at SimCorp.

The early stages of earnings season continue Thursday, with CarMax falling more than 11% after disappointing on both top and bottom lines. The unofficial start to the period commences with big bank earnings from JPMorgan, Wells Fargo and Citigroup on Friday.