US stocks moved higher on Thursday following President Donald Trump’s statement that he intends to introduce reciprocal tariffs later in the day. At the same time, investors analyzed new data indicating that inflation may be picking up again.
The Dow Jones Industrial Average (DJI) climbed by 0.3%, while the S&P 500 (GSPC) advanced by 0.6%, recovering from the previous session’s decline. Meanwhile, the Nasdaq Composite (IXIC), which is heavily weighted toward technology stocks, surged by over 1%, driven by gains in Nvidia (NVDA) and Tesla (TSLA).
Market participants are closely watching for the official announcement of Trump’s proposed reciprocal tariffs, which are expected to be revealed at 1 p.m. ET. In a social media post earlier in the day, Trump referred to the upcoming decision as “the big one”, signaling its potential impact on trade policies.
Reports suggest that the new tariffs—if implemented—may not take effect until April 1. These measures could be applied to any nation that places tariffs on US imports, potentially reshaping global trade relations.
On the economic front, the latest Producer Price Index (PPI) for January highlighted persistent wholesale inflation, reinforcing concerns sparked by an earlier report on consumer inflation. The data has dampened optimism about a possible interest rate cut in the near future.
Meanwhile, the ongoing earnings season continues to deliver strong results, with nearly 70% of S&P 500 companies that have reported so far exceeding expectations. Robinhood (HOOD) shares soared after the company posted better-than-expected fourth-quarter profits following Wednesday’s closing bell. However, Reddit (RDDT) faced a setback as its stock tumbled due to disappointing user growth figures.
