Dow jumps 350 points as Trump holds off on new tariffs, Nvidia rallies: Live updates – CNBC
Source: CNBC
Stocks rose Thursday as new inflation data and updates on U.S. tariff plans appeared to ease some concerns around inflationary pressures and global trade tensions.
The Dow Jones Industrial Average jumped 342.87 points, or 0.77%, to 44,711.43. The S&P 500 climbed 1.04% to 6,115.07, and the Nasdaq Composite advanced 1.50% to 19,945.64.
The Dow hit session highs after President Donald Trump signed a presidential memorandum to examine reciprocal tariffs on foreign nations, but fell short of implementing any levies after teasing major trade policy changes this week. He also suggested that additional tariffs, including on auto imports, are on the way, Reuters reported.
A jump in big-name tech stocks fueled Thursday’s gains. Nvidia gained about 3.2% after Hewlett Packard Enterprise said it shipped its first solution using Nvidia’s Blackwell chip. AppLovin, the best-performing U.S. tech stock last year, soared 24% on earnings. Tesla rose 5.8%.
Stocks rose on the release of the producer price index, a measure of what producers get for their goods and services, which reflected a 0.4% increase for January. That came out higher than the Dow Jones consensus estimate for 0.3%. Core PPI, which excludes food and energy, was up 0.3% for the month and in line with the forecast.
Despite the hotter number on the surface, the latest PPI report and Wednesday’s consumer price index data point to a softer PCE price index than traders feared. That measure, which will be released in February, is what the Federal Reserve closely tracks.
The 10-year Treasury yield fell after the inflation data and was recently down about 10 basis points to 4.531%.
“The components that feed into PCE is, I think, where we’re getting the celebration today. That’s helping bring yields down a little bit as well,” said Adam Turnquist, chief technical strategist at LPL Financial.
“We’re watching 4.5% as the line in the sand for this upturn that’s been in place since September. A break below that would be a welcome sign for equity markets,” he added.
Wall Street is coming off a choppy session after data on Wednesday showed consumer prices sped up faster than expected, curbing expectations of the next rate cut out to September. Investors continue to grapple with rising global trade tensions as well.
Stocks rallied Thursday, led by a jump in tech shares.
The Dow Jones Industrial Average jumped 342.87 points, or 0.77%, to close at 44,711.43. The S&P 500 climbed 1.04% to finish at 6,115.07, and the Nasdaq Composite advanced 1.50% to end at 19,945.64.
Casino stocks rose in tandem on Thursday with MGM Resorts after the casino operator posted a fourth-quarter earnings and revenue beat.
MGM topped analysts’ estimates on both the top and bottom lines after reporting a boost from China and optimism over demand so far this year. Shares of MGM were last trading nearly 18% higher, on pace for their best day since March 2020.
Fellow casino stocks Caesars Entertainment and Las Vegas Sands respectively added 8% and 1%. Wynn Resorts, which reports earnings after Thursday’s closing bell, was last trading nearly 3% higher.
Shares of several defense stocks slipped after President Trump said Thursday afternoon that defense spending could be halved.
Lockheed Martin and Northrop Grumman each shed more than 1% shortly after 2:30 p.m. ET, while General Dynamics lost 1.5%. Huntington Ingalls was down 0.7%.
Trump also said he will seek discussions with China and Russia on reducing military spending and denuclearization.
The MSCI India Index inched down around 0.2% Thursday, putting the ETF down 3.1% week to date.
The pullback comes amid Indian Prime Minister Narendra Modi’s visit to Washington, D.C., where he and President Trump are expected to hold a joint press conference later on Thursday.
When signing the executive order for U.S. reciprocal tariffs on Thursday, Trump said “India has more tariffs than any other country.” The U.S. recorded a $45.7 billion trade deficit with India in 2024, according to data from the Census Bureau.
Cybersecurity firm SailPoint began trading on the Nasdaq on Thursday after going private two years ago, with the company pricing its shares for its initial public offering at $23 each.
Shares were last trading right around its IPO price at $23.03.
Shares of Arm Holdings spiked nearly 8% Thursday afternoon, following a report from the Financial Times that the semiconductor designer was planning to launch its own chip this year.
Arm could unveil its first in-house produced chip as early as this summer, the article said, citing people familiar with the matter. The company has already secured Meta as one of its first potential customers.
Arm could unveil its first in-house produced chip as early as this summer, the article said, citing people familiar with the matter. The company has already secured Meta as one of its first potential customers.
Arm is currently one of the biggest players in the chip design industry. Moving toward building its own complete chip c
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