U.S. stocks surged on Thursday, with major indexes approaching record levels as fresh economic data indicated a slowdown in wholesale inflation and President Trump’s latest tariff order turned out to be less aggressive than anticipated.

The Nasdaq Composite led the gains, climbing 1.5%, while the S&P 500 rose 1% to close just a fraction below its all-time high. The Dow Jones Industrial Average also advanced, adding 0.8% and moving within 0.7% of its peak.

The rally followed a day of mixed performance in equities, which had been weighed down by concerns over consumer inflation data. However, Thursday’s Producer Price Index (PPI) report helped shift sentiment. The index increased by 0.4% in January, slightly above expectations but a step down from December’s 0.5% rise. Core PPI, which excludes food and energy prices, climbed 0.3%, also marking a deceleration from the previous month.

The moderation in wholesale inflation led traders to grow more optimistic about potential Federal Reserve rate cuts later this year, as reflected in the CME Group’s FedWatch Tool. Bond markets responded swiftly, with the 10-year Treasury yield sliding to 4.53%, reversing the gains it had posted following Wednesday’s consumer inflation report.

Meanwhile, President Trump signed an executive order instructing federal agencies to explore reciprocal tariffs, though the directive stopped short of imposing immediate levies. The move reassured investors concerned about the possibility of sweeping new trade restrictions.

Tech stocks played a significant role in Thursday’s rally. Tesla (TSLA) jumped nearly 6% after its name surfaced in a State Department spending projection, while Nvidia (NVDA) gained 3%, and Apple (AAPL) advanced 2%. The other members of the so-called Magnificent Seven also rose, with Meta Platforms (META) extending its winning streak to 19 consecutive sessions. The only trillion-dollar tech stock that declined was Broadcom (AVGO), which saw a slight pullback.

Elsewhere in the market, Cisco Systems (CSCO) climbed 2% after the company exceeded quarterly earnings expectations and lifted its full-year guidance. Marketing software provider Applovin (APP) soared 24%, continuing its impressive run over the past year, after reporting stronger-than-expected financial results.

Not all stocks benefited from the bullish sentiment. Reddit (RDDT) slipped 5% following lackluster user growth, while agricultural equipment giant Deere (DE) dropped 2% after its quarterly revenue fell short of forecasts. Software firms The Trade Desk (TTD) and Datadog (DDOG) also struggled, sinking 33% and 8%, respectively, on weaker-than-expected earnings reports.

In the commodities market, Bitcoin edged lower to $96,500, while gold futures rallied to $2,960 per ounce, hovering near a record high. West Texas Intermediate crude oil recovered from earlier losses, trading at $71.50 per barrel by the session’s end.

Overall, the combination of easing inflation concerns and a tempered tariff policy provided a boost to investor sentiment, propelling stocks closer to uncharted territory.