WASHINGTON (dpa-AFX) - After moving to the downside early in the session, stocks have regained ground over the course of the trading day on Thursday. The major averages have climbed well off their lows of the session and into positive territory.
Currently, the major averages are posting modest gains. The S&P 500 is up 16.03 points or 0.3 percent at 6,038.27, the Nasdaq is up 47.26 points or 0.2 percent at 19,663.14 and the Dow is up 6.09 points or less than a tenth of a percent at 42,871.86.
The turnaround on Wall Street comes as traders digest the latest U.S. inflation data, with a report from the Labor Department showing producer prices crept up by less than expected in the month of May.
The Labor Department said its producer price index for final demand inched up by 0.1 percent after slipping by a revised 0.2 percent in April.
Economists had expected producer prices to rise by 0.3 percent compared to the 0.4 percent decline originally reported for the previous month.
Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.6 percent in May from 2.5 percent in April, in line with economist estimates.
'For the second day in a row, inflation data came in lower than expected and this gives the Fed room to sit on their hands,' said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
He added, 'As long as inflation isn't increasing - or even better, is decreasing - the Fed can be patient and wait for more information on how the new tariffs and trade negotiations are going to impact the price stability part of their dual mandate later this year.'
Stocks moved lower earlier in the day due in part to lingering uncertainty about trade amid a lack of details about the U.S.-China trade deal announced on Wednesday.
President Donald Trump told reporters he would send letters to other U.S. trade partners in about two weeks outlining new tariff rates.
Trump also indicated he would be willing to extend the 90-day pause on tariffs set to expire early next month but said he doesn't think it will be necessary.
Sector News
Gold stocks have shown a strong move to the upside amid a sharp increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index climbing by 1.4 percent.
Notable strength is also visible among pharmaceutical stocks, as reflected by the 1.4 percent gain being posted by the NYSE Arca Pharmaceutical Index.
Software and networking stocks are also seeing some strength on the day, while airline stocks are extending yesterday's slump.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index slid by 0.7 percent, while South Korea's Kospi climbed by 0.5 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.3 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.'s FTSE 100 Index is up by 0.3 percent.
In the bond market, treasuries are extending the notable upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.1 basis points at 4.383 percent.
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