02:03 PM EDT, 09/12/2024 (MT Newswires) -- US equity indexes rose with government bond yields as a relatively hot inflation print lifted the odds for a gradual monetary policy easing, starting next week.

The S&P 500 index rose 0.7% to 5,590.2, and the Nasdaq Composite climbed 0.9% to 17,550.4. The Dow Jones Industrial Average edged 0.5% higher to 41,048.8 after trading lower earlier in the session. Real estate was the sole decliner intraday.

The US Producer Price Index grew 0.2% month-over-month in August following a flat reading in July, the Bureau of Labor Statistics said Thursday, faster than the 0.1% gain expected in a survey compiled by Bloomberg. Excluding food and energy prices, core PPI climbed 0.3%, above the 0.2% gain expected and a 0.2% decline in the previous month.

On a year-over-year basis, PPI was up 1.7% in August versus a 2.1% growth in the previous month. However, the rate for PPI excluding only food and energy accelerated modestly to 2.4% from 2.3%, and the rate for PPI excluding food, energy, and trade services advanced to 3.3% from 3.2%.

The hotter-than-expected read on the PPI coupled with Wednesday's hotter read on the core CPI, thanks to a larger increase in shelter and airline fares, underscores the Federal Open Market Committee's lingering focus on inflation, according to a Stifel note Thursday.

"While continuing a disinflationary trend and supporting the Fed's intentions to open the door to rate cuts in less than one weeks' time, the ongoing uncertainty and unevenness in price growth reinforces the need for a slow and tempered approach to policy adjustment as the data continue to evolve," Stifel Chief Economist Lindsey Piegza said in the note.

The probability of a 50 basis point cut in interest rates dived to 13% as of Thursday afternoon from 40% a week ago, according to the CME Group's FedWatch Tool. The remaining 87% likelihood is for a 25 basis point cut, up from 60% a week earlier. The FOMC policy announcement is due Sept. 18.

Further, in economic news, US initial jobless claims rose to 230,000 in the week ended Sept. 7 from an upwardly revised 228,000 in the previous week, compared with expectations for a decrease to 227,000 in a survey of analysts compiled by Bloomberg. The four-week moving average rose by 500 to 230,750.

Treasury yields rose intraday, with the 10-year yield advancing 4.7 basis points to 3.7%, and the two-year rate was 2.6 basis points higher at 3.67%.

West Texas Intermediate crude oil jumped 2.7% to $69.14 a barrel.

In company news, Moderna ( MRNA ) said it plans to cut back on its research and development spending as the company looks to save costs and prioritize new products in the pipeline. Shares plunged 12% intraday, the worst performer on the S&P 500 and the Nasdaq.

Warner Bros. Discovery (WBD) and Charter Communications ( CHTR ) said they have entered a multi-year distribution agreement integrating linear video and streaming services. Shares of Warner Bros. jumped 8.1% intraday, the top performer on the Nasdaq.

Gold jumped 1.5% to $2,581.11 an ounce, and silver surged 4% to $30.09.