US equity indexes rose as investors remained unfazed by the impact of another stronger-than-expected inflation report on the Federal Reserve and President Donald Trump's reciprocal punitive import duties due Thursday.

The Nasdaq Composite advanced 0.8% to 19,804.9, with the S&P 500 up 0.5% to 6,080.5 and the Dow Jones Industrial Average 0.2% higher at 44,474.8.

The US Producer Price Index rose 0.4% in January versus an upwardly revised 0.5% gain in December, as per the Bureau of Labor Statistics, but was above the 0.3% increase expected in a survey compiled by Bloomberg. Core PPI grew, as expected, by 0.3% compared with an upwardly revised 0.4% gain in the previous month.

PPI was up 3.5% year-over-year in January, the same as in the previous month but above expectations. Core PPI slowed to 3.6% from 3.7% but was higher than forecast.

"Key is how PPI translates into the Fed's preferred PCE inflation readings given that some components of PPI are used in PCE," Derek Holt, head of capital markets economics, said in a note. "PPI components translate into about a 0.06% weighted drag on headline PCE and slightly more for core PCE, which generously rounds up to a 0.1% weighted drag."

US Treasury yields slumped, with the 10-year plunging 9.9 basis points to 4.54% and the two-year sliding 5.6 basis points to 4.31%.

The stronger-than-expected PPI data followed Wednesday's hotter-than-anticipated consumer price inflation for January.

The strong CPI inflation print "boxes in" Trump at a time the Federal Reserve is "threatening to raise rates if tariffs raise inflation," according to a note from Macquarie Thursday. "The message that traders are getting is that 'concessions and compromise' - instead of tariffs - may be the norm."

While Trump will likely announce reciprocal tariffs on Thursday, the import duties will not take effect for "some months," with possibly an April 1 start date, CNBC reporter Eamon Javers said on X, citing sources. Indian Prime Minister Narendra Modi will meet Trump in Washington on the same day to discuss trade, tariffs, and other bilateral matters. India is Asia's second-biggest economy after China.

The US dollar index fell 0.5% to 153.13.

Further, in economic news, US initial jobless claims fell to 213,000 during the week ended Feb. 8, from an upwardly revised 220,000 in the previous week, compared with expectations for 216,000 in a survey of analysts compiled by Bloomberg.

In company news, MGM Resorts International (MGM) reported Q4 adjusted diluted earnings and revenue late Wednesday above the average analyst estimates compiled by FactSet. Shares surged 16% intraday, the top performer on the S&P 500.

AppLovin (APP) shares rallied 24% after the company reported higher Q4 net income and revenue late Wednesday. Oppenheimer adjusted the company's price target to $560 from $480 while maintaining an outperform rating on the stock. Shares of AppLovin soared 30% intraday, the leader on the Nasdaq.

The Trade Desk (TTD) shares sank 32%, the steepest decliner on the Nasdaq, a day after the company posted Q4 revenue that trailed analysts' estimates.

West Texas Intermediate crude oil futures slipped 0.1% to $71.31 a barrel.

Gold futures rose 0.6% to $2,946.21. Silver fell 0.4% to $32.66.