US stocks surge as investors bet on Fed’s soft landing

US stocks rose on Thursday after less-than-expected inflation data encouraged traders’ expectations for a soft landing for the US economy.

Big Tech led the way as stocks rose on Thursday as traders celebrated yet another report that suggested that US inflation was slowing.

The S&P 500 climbed 1.3% to 4,145, which would be its highest close since February 7. The Nasdaq Composite advanced 2.01%, for its best gain this month. The Dow Jones Industrial Average added 352 points, or 1%, and also headed for its highest close since February.

The March producer prices index, a measure of prices paid by companies and often a leading indicator of consumer inflation, declined by 0.5% month over month versus expectations for prices to be flat. Excluding food and energy, the core wholesale prices reading shed 0.1% month over month, much better than the 0.2% increase expected by economists polled by Dow Jones.

The PPI data confirmed the easing inflation trend from Wednesday’s March’s consumer price index report, which advanced just 0.1% month over month. Consumer prices grew 5% on an annual basis, the smallest increase in nearly two years.