Stocks were slightly higher Thursday after a fresh round of inflation data reflected an uptick in consumer prices for December.
The S&P 500 rose 0.2%, while the Nasdaq Composite advanced 0.4%. The Dow Jones Industrial Average gained 41 points, or 0.1%. The S&P 500 briefly traded above a record closing high of 4,796.56.
GaN Company Transphorm shares soared 26% on the news that Renesas Electronics (OTCPK:RNECY) to acquire all outstanding shares of Transphorm’s (NASDAQ:TGAN) common stock for $5.10 per share in cash, representing a premium of about 35% to Transphorm’s closing price on January 10.
December’s consumer price index report came out slightly higher-than-expected, reflecting a 0.3% increase in consumer prices for the month, pushing the annual rate to 3.4%. Economists polled by Dow Jones had predicted that the CPI rose 0.2% in December and 3.2% on a year-over-year basis. Core CPI, excluding volatile food and energy prices, came out in line with expectations, however, pointing to persistent—yet easing—inflation pressures.
Yields rose on the back of the CPI data, with the yield on the 10-year Treasury note rising more than 3 basis points to 4.064%.
“The ‘higher for longer’ party has received one more bullet in its banderole,” said Giuseppe Sette, president of market research firm Toggle AI. “With CPI marginally higher than expected ... it becomes harder for the Fed to say that inflationary pressures have been tamed, especially in the face of a strong job market.”
Investors are also eyeing the kickoff of the fourth-quarter earnings season, which will see banking behemoths Bank of America, Wells Fargo and JPMorgan Chase report results Friday.
Elsewhere, the U.S. Securities and Exchange Commission on Wednesday approved rule changes, opening the door for bitcoin exchange-traded funds and expanding investors’ access to the flagship crypto. Bitcoin has since ticked up, adding more than 3% to reach $47,200. Coinbase and Robinhood shares gained more than 2% and 3%, respectively, in premarket trading Thursday.
Stocks are coming off a winning session, with all three major indexes rising on Wednesday. The S&P 500 added 0.57%, while the Nasdaq Composite gained 0.75%. The 30-stock Dow advanced 0.45%.
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