US equity indexes rose while government bond yields fell as investors awaited reciprocal punitive import duties from President Donald Trump on Thursday following a stronger-than-expected wholesale price inflation report.
The Nasdaq Composite gained 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 by 0.4% in January versus an upwardly revised 0.5% gain in December, as per the Bureau of Labor Statistics, but above the 0.3% increase expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI increased by 0.3% as expected, 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 market expectations. Core PPI slowed to 3.6% year-over-year from 3.7% in December but was higher than the market had forecast.
Trump will announce reciprocal tariffs on Thursday, but they 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 Thursday to discuss trade, tariffs, and other bilateral matters. India is Asia's second-biggest economy after China.
US Treasury yields fell, with the 10-year plunging 9.9 basis points to 4.54% and the two-year slumping 5.6 basis points to 4.31%.
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.
West Texas Intermediate crude oil futures stood little changed at $71.41 a barrel after trading lower earlier in the session.
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