The Dow and other major indices edged higher Thursday morning as President Donald Trump is prepared to impose a reciprocal tariff later in the day. Under this policy, if a country levies tariffs on American products, the U.S. will respond by applying an equivalent tariff on that country’s goods. President Trump will meet with Indian Prime Minister Narendra Modi, and the announcement will be made prior to their meeting.
Shortly after the market opened, the Dow Jones Industrial Average was up 0.04%. The tech-heavy Nasdaq and S&P 500 added 0.5% and 0.2%, respectively.
Meanwhile, inflationary pressures persisted, with wholesale price data hotter than expected. The Producer Price Index (PPI), which tracks what producers receive for their goods and services, rose 0.4% in January—exceeding analysts’ estimates of 0.3%. Core PPI, which excludes food and energy, increased 0.3% for the month, aligning with forecasts.
The labor market remained resilient, with fewer Americans filing for unemployment benefits last week. According to the Labor Department, initial jobless claims dropped by 7,000 to a seasonally adjusted 213,000 for the week ending February 8. The figure came in below economists’ expectations of 215,000 claims.
Jamie Cox, Managing Partner at Harris Financial Group, told Quartz in an email:
“It’s a positive sign that markets are prioritizing the strength of the labor market over volatile inflation data.”
“The key takeaway is that the strong economic foundation remains intact.”
Shares of Robinhood (HOOD+14.65%) climbed on Thursday as the trading platform delivered stronger-than-expected earnings a day earlier. The company reported a 115% year-over-year increase in revenue, surpassing analysts’ estimates and signaling robust user engagement despite market volatility. In contrast, shares of social media giant Reddit (RDDT-2.34%) declined after the company fell short of earnings expectations.
Today, investors are closely watching earnings reports from Airbnb (ABNB-0.95%) and Coinbase (COIN+7.14%), both set to be released after the closing bell.
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