Apple, other tech shares bounce after mixed inflation data
NEW YORK, United States — Apple and other tech shares led US equities higher Thursday following mixed inflation data and a European Central Bank decision that signaled a possible imminent interest rate cut.
US wholesale inflation rose by 0.2 percent in March, a bit less than expected. However, on an annual level the index for final demand increased 2.1 percent for the 12 months ending in March — its highest level since April 2023.
Tom Cahill of Ventura Wealth Management said the equity gains were reflective of investor “relief” that the inflation report “wasn’t worse than expected” after Wednesday’s consumer price report sent stocks tumbling.
The Dow Jones Industrial Average finished flat at 38,459.08.
The broad-based S&P 500 gained 0.7 percent to 5,199.06, while the tech-rich Nasdaq Composite Index advanced 1.7 percent to 16,442.20.
READ: Wall St rebounds following its slide as Big Tech takes the reins again
Apple jumped nearly four percent following a JPMorgan Chase report that pointed to improving investor sentiment on the company, in part due to enthusiasm that iPhones will benefit from upgrades for more AI technology.
Chip companies also had a good day, with Nvidia, Broadcom and Micron all winning more than 4 percent.
READ: ECB opens door to June rate cut after another pause
The European Central Bank, as expected, held interest rates steady again but said slowing inflation could open the door to easing monetary policy, raising hopes of a first cut in June.
Investors are looking ahead to earnings from major banks on Friday. JPMorgan Chase was flat, while Wells Fargo fell 0.4 percent and Citi climbed 0.9 percent. All three report on Friday.
