Stock market today: S&P 500, Nasdaq rise amid more signs of inflation cooldown

US stocks rose on Thursday as investors digested fresh inflation and labor data testing high-running expectations for a quarter-point interest-rate cut next week.

The S&P 500 ( ^GSPC ) rose 0.1% while the Nasdaq Composite ( ^IXIC ) gained 0.3%, coming off sharp closing gains fueled by a tech rally. The Dow Jones Industrial Average ( ^DJI ) was little changed.

The market is regrouping after a seesaw Wednesday that saw revived enthusiasm for techs pull stocks out of a slide. Those losses came as the latest consumer inflation reading knocked hopes for a 0.5% rate cut by the Federal Reserve.

Fed predictions for 2024: What experts say about the possibility of a rate cut

Before the bell, the August Producer Price Index provided indication that inflation pressures are cooling enough for the Fed to start easing rates.

Wholesale prices rose at a rate of 0.2% month-over-month, slightly above what economists anticipated. On an annualized basis, PPI increased 1.7%, in line with expectations, while July's reading was revised lower.

Meanwhile, data showed initial jobless claims climbed more than expected to 230,000 last week, an increase of 2,000 from the prior weekly period. Traders' odds of a 25 basis point cut edged up to 87% after the reports, compared with 50% just days ago.

On the corporate front, Moderna ( MRNA ) shares cratered as much as 17% after the vaccine maker lowered its annual revenue outlook for 2025. The company also said it will slash its annual R&D budget.