Wholesale inflation data was higher than expected, while labor market data remained strong
The Dow and other major indices climbed on Thursday as President Donald Trump signed a reciprocal tariff in the afternoon. Under this policy, if a country levies tariffs on American products, the U.S. will respond by applying an equivalent tariff on that country’s goods. The reciprocal tariffs will not take effect immediately, and Trump stated that the appropriate tariff levels for each affected country will be determined.
As the day ended, the Dow Jones Industrial Average added 342 points or 0.7%. The tech-heavy Nasdaq $NDAQ and S&P 500 added 1.5% and 1%, respectively.
Meanwhile, inflationary pressures persisted, with wholesale price data hotter than expected. The Producer Price Index (PPI), which tracks what producers receive for their goods and services, rose 0.4% in January—exceeding analysts’ estimates of 0.3%. Core PPI, which excludes food and energy, increased 0.3% for the month, aligning with forecasts.
The labor market remained resilient, with fewer Americans filing for unemployment benefits last week. According to the Labor Department, initial jobless claims dropped by 7,000 to a seasonally adjusted 213,000 for the week ending February 8. The figure came in below economists’ expectations of 215,000 claims.
Jamie Cox, Managing Partner at Harris Financial Group, told Quartz in an email: “It’s a positive sign that markets are prioritizing the strength of the labor market over volatile inflation data.”
“The key takeaway is that the strong economic foundation remains intact.”
Intel $INTC (INTC) stock extended its rally into a fourth day on Thursday, surging more than 8% to trade above $24 per share. The legacy chip maker is now up more than 20% so far this year — compared to a dip of about 1.5% to start 2025 for AI chip maker Nvidia $NVDA (NVDA).
The stock rally has come amid speculation about increased U.S. government support for the company and a possible collaboration with TSMC $TSM (TSM), the Taiwan-based chipmaking giant.
The Trump administration is looking at a $400 million, five-year contract for “Armored Electric Vehicles” that could refer to Teslas. The State Department had previously listed “Armored Tesla $TSLA (TSLA) (Product Units)” in its procurement forecast for 2025, according to multiple news outlets. It has since revised that line item to “Armored Electric Vehicles.” Following the news, Tesla’s shares (TSLA) were up in the morning.
Shares of Robinhood (HOOD) climbed on Thursday as the trading platform delivered stronger-than-expected earnings a day earlier. The company reported a 115% year-over-year increase in revenue, surpassing analysts’ estimates and signaling robust user engagement despite market volatility. In contrast, shares of social media giant Reddit $RDDT (RDDT) declined after the company fell short of earnings expectations.
—Britney Nguyen and Josh Fellman contributed to the article
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
