Stocks rose on Thursday as Apple shares recovered from losses in the previous session. Investor sentiment was also boosted as fears of rapidly rising inflation were tempered.
The Dow Jones Industrial Average rose 147.07 points to 26,145.99 to post a three-day winning streak with Apple contributing the most to the gains. The S&P 500 climbed 0.5 percent to 2,904.18, led by a 1.2 percent gain in tech. The broad index also rose for a fourth straight day. The Nasdaq Composite advanced 0.8 percent to 8,013.71 as Alphabet rose nearly 1 percent.
Equities came off their highs, however, after President Donald Trump said there was no pressure to strike a trade deal with China. The Dow had gained as much as 192.72 points, while the S&P 500 and Nasdaq rose as much as 0.6 percent and 1.1 percent, respectively.
The consumer price index — a widely followed inflation metric — rose 0.2 percent last month. Economists polled by Reuters expected a gain of 0.3 percent.
"Add in both yesterday's muted producer price numbers and the less than enthusiastic appraisal from the Fed, and we now have three separate signals that the economy is not the runaway train some feared," said Mike Loewengart, vice president of investment strategy at E-Trade. "In fact it suggests inflation is still in the Fed's sweet spot as we march towards a normalized rate environment."
Investors had grown fearful of rising inflation recently, as it could lead to tighter monetary policy. The Federal Reserve has raised rates twice this year and is forecast to hike again later this month.