Investing.com — U.S. stock trading was largely higher, as further signs of slowing inflation raised expectations for a rate cut from the Federal Reserve.
At 06:20 EST (10:20 GMT), it was down 150 points or 0.4%, while trading 10 points or 0.2% higher and up 100 points or 0.6%.
Benign PPI data helps the tone
US producer prices fell unexpectedly in May, with the Producer Price Index falling 0.2% last month after rising an unrevised 0.5% in April.
In the 12 months through May, the producer price index rose 2.2% after rising 2.3% in April.
This followed data showing that consumer prices were unchanged in May for the first time in nearly two years, raising financial markets' hopes that the Federal Reserve will begin cutting interest rates in September.
The US central bank on Wednesday left its benchmark overnight interest rate unchanged, but Fed officials indicated the central bank was now prepared to cut interest rates just once this year, down from a previous estimate in March of three cuts.
Broadcom shines
The technology sector was in the spotlight this week, after Apple (NASDAQ:) announced a slew of new AI features for its flagship devices, and that it was also partnering with OpenAI to implement some of the features, and cloud giant Oracle (NYSE):) announced… AI partnerships with Alphabet (NASDAQ:) and Microsoft (NASDAQ:).
That focus continued on Thursday, as Broadcom (NASDAQ:) stock rose more than 14% after the chipmaker posted big profits based on demand for artificial intelligence. The company also announced a 10-for-1 stock split.
Elsewhere, Dave & Buster's Entertainment (NASDAQ:) stock fell more than 8% after the company's first-quarter revenue beat estimates.
Tesla (NASDAQ:) stock rose 5.5% after CEO Elon Musk said in a social media post that shareholders support his $56 billion pay package and the electric car giant's move to re-establish in Texas from Delaware.
Rough edges rise after the release of the producer price index
Crude oil prices rose on Thursday, supported by slowing US inflation, recovering from losses after a surprise increase in US crude oil inventories.
By 06:20 EST, WTI futures were trading 0.2% higher at $78.66 per barrel, while the Brent contract was up 0.4% at $82.88 per barrel.
Government data, released on Wednesday, showed that the United States unexpectedly grew by 3.7 million barrels in the first week of June, versus expectations for a withdrawal of 1.2 million barrels.
The large increase in distillate and gasoline stocks also raised concerns that demand for fuel will not rise with the summer season as expected.
(Ambar and Eric contributed to writing this article.)