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Stocks Grind Higher as Inflation Data Cools Rate Fears

S&P 500
5,872
+0.70%
Dow
42,340
+0.50%
Nasdaq
19,180
+0.90%
VIX
17.40
Oil
$74.60
Gold
$3,215
Biggest Gainer
NVDA+3.40%
Nvidia surged after a major sovereign wealth fund disclosed a significant new position, reigniting AI infrastructure enthusiasm.
Biggest Loser
CVS-4.10%
CVS Health dropped sharply after cutting its full-year earnings guidance amid rising pharmacy benefit costs and weaker-than-expected Medicare Advantage enrollment.

Thursday turned into a quiet but confident rally as investors digested a cooler-than-expected Producer Price Index reading, which showed wholesale inflation ticking down 0.1% in May. That gave the Federal Reserve more breathing room to hold rates steady — and possibly cut later this year — sending equities broadly higher across all three major indexes.

Tech led the charge, with the Nasdaq gaining nearly 1% as AI-related names found fresh momentum. Nvidia was the standout, surging 3.4% after reports of a large institutional buyer entering the stock. Semiconductor peers like AMD and Broadcom also logged modest gains, keeping the sector firmly in the green.

Energy stocks were mixed as crude oil held near $74.60 a barrel — not enough to spark a sector rally but steady enough to prevent a selloff. Gold touched $3,215, reflecting lingering demand for safe-haven assets even on a risk-on day. The VIX dipped to 17.4, signaling that fear is fading but investors aren't fully complacent.

On the downside, CVS Health was the session's most notable loser, falling 4.1% after slashing its profit outlook. Healthcare broadly underperformed as investors rotated into growth names benefiting from the softer rate narrative.

What to Watch Next
Friday brings the University of Michigan Consumer Sentiment survey for June — a key read on whether households are feeling the pinch from tariffs and elevated borrowing costs. Any surprise to the downside could take some steam out of this week's rally.

Why the Market Moved

Main Driver
Inflation dominated today's session, pushing the S&P 500 higher by 0.70%.
Risk Level
VIX at 17.4 signals low volatility. Oil at $75/barrel within normal range.

Key Takeaways

  • S&P 500 gained 0.7% to 5,872 while the Dow rose 0.5%
  • NVDA led gainers at +3.4% — Nvidia surged after a major sovereign wealth fund disclosed a significant new position, reigniting AI infrastructure enthusiasm.
  • CVS was the biggest loser at -4.1% — CVS Health dropped sharply after cutting its full-year earnings guidance amid rising pharmacy benefit costs and weaker-than-expected Medicare Advantage enrollment.
  • VIX at 17.4volatility within normal range
InflationFederal ReserveAI StocksHealthcare
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