U.S. stocks climbed on Thursday, February 13, 2025, as investors reacted to slowing wholesale inflation and President Donald Trump’s decision to delay reciprocal tariffs. The Nasdaq Composite rose 1%, while the Dow Jones Industrial Average and S&P 500 gained 0.3% and 0.6%, respectively. Tech giants like Nvidia, Apple, and Tesla led the rally, with Tesla also buoyed by reports of a potential government contract for armored electric vehicles.

The Producer Price Index (PPI) showed wholesale inflation rose 0.4% in January, slightly above economists’ expectations but below December’s 0.5% increase. Core PPI, excluding food and energy, rose 0.3%, signaling a deceleration in price pressures. This data pushed market expectations for a Federal Reserve rate cut to the end of the year, easing concerns about aggressive monetary tightening.

Investors also welcomed Trump’s decision to delay implementing reciprocal tariffs on countries that tax U.S. imports. While the tariffs remain a possibility, the delay provided temporary relief to markets. Cisco Systems and Applovin saw significant gains after strong earnings reports, while Reddit shares fell due to disappointing user growth.