Stock Market News: Nasdaq Hits Record After PPI Inflation Data

The Nasdaq Composite surged to a record close on Thursday, with Big Tech leading a broader market rally after the latest inflation update came in cooler than expected.

The Dow Jones Industrial Average was flat. The S&P 500 was up 0.8%. The Nasdaq Composite was up 1.7%, its highest close on record.

The 2-year Treasury yield dipped to 4.959% at 3 p.m. The 10-year yield was up to 4.575%.

The producer price index rose 0.2% in March from February, which was lower than the 0.3% price growth economists had expected. Stocks had fallen on Wednesday when the consumer price index showed inflation is proving stickier than the Federal Reserve had hoped.

“The inflation data are noisy, and the market reflects that reality,” writes Jamie Cox, managing partner at Harris Financial Group. “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. The Fed will cut into the noise, but not until after June.”

Odds of at least one rate cut by the July meeting ticked up to 48.2% from 42.4% on Wednesday, according to the CME FedWatch Tool. That’s still down from 80.7% odds a week ago, prior to the hot CPI report.

Traders will now turn their attention to the start of earnings season, which begins with banks on Friday.