U.S.Stocks Rise on Soft Inflation and Tech earnings
U.S. stocks saw gains on Thursday. Investors were encouraged by soft inflation numbers and the possibility of a Federal Reserve rate cut. Strong tech earnings also played a role, helping to balance out trade concerns and sector-specific losses.
The S&P 500 climbed 0.38%, closing at 6,045.26. This puts the benchmark index just under 2% from its all-time high. The Nasdaq Composite rose 0.24%,and the Dow Jones industrial Average gained 101.85 points, or 0.24%,to 42,967.62.
Oracle was the standout, soaring 13% after reporting better-than-expected quarterly results. The company projects over 70% growth in cloud infrastructure revenue next year, driven by rising AI demand. This strong report boosted the tech sector and contributed to market gains.
Despite a 4.8% drop in Boeing shares following a 787 Dreamliner crash in india, investor sentiment remained positive. Treasury yields eased, and softer economic data suggested potential Fed policy easing.
Rate cut expectations are rising. Weaker inflation and labor data give the Fed more room to ease without increasing price pressures. The May producer price index rose just 0.1%, below expectations, and jobless claims showed labor market softening.
Trade tensions are still a concern. President Trump plans to send tariff warning letters to many countries but signaled progress with China and other partners.Despite uncertainty, investors remain cautiously optimistic.
