U.S. Stocks rose on Thursday as traders weighed slightly hotter-than-expected inflation data against ongoing global trade tensions. The Dow Jones Industrial Average added 122 points, or 0.3%, while the S&P 500 climbed 0.5% and the Nasdaq Composite advanced 0.9%. The producer price index (PPI) reported a 0.4% increase for Januaryabove the consensus estimate of 0.3%and core PPI, excluding food and energy, rose 0.3% in line with forecasts.

Market participants focus on the fact that the recent PPI and Wednesday's consumer price index data hint at a softer personal consumption expenditure (PCE) price index than initially feared. The PCE remains the key inflation gauge for the Federal Reserve. Jamie Cox, managing partner for Harris Financial Group, noted that traders now prioritize the strong labor market amid mixed inflation signals. Meanwhile, investors face rising global trade tensions after the White House announced President Donald Trump will impose reciprocal tariffs on imported goods ahead of his meeting with Indian Prime Minister Narendra Modi. Trump, on Truth Social, confirmed a news conference on reciprocal tariffs scheduled for 1pm ET on Thursday. Overall, investors show cautious optimism as they navigate these complex economic signals.