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CarMax ( KMX ) drops after Q4 results miss

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Rent a Runway surges amid AI frenzy

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March producer prices at 2.1% YoY vs 2.2% est

(Updates to market close)

By Stephen Culp

NEW YORK, April 11 (Reuters) -

U.S. stocks closed higher on Thursday, with tech-related

momentum stocks leading the charge, as fresh economic data

rekindled hopes that inflation remains in a cooling trend.

Interest rate-sensitive megacaps gave the tech-heavy Nasdaq

a decisive edge.

The Producer Prices index (PPI) came in softer than

expected, supporting the narrative that price growth is still

cooling.

"The data this morning was mildly more supportive of sort of

a benign 'soft landing' outcome than the data yesterday," said

Brian Nick, senior investment strategist at Macro Institute. "I

guess it feels like a natural kind of snapback from, what was

potentially an overreaction yesterday."

On Wednesday, hotter-than-expected CPI data sent stocks

sharply lower and benchmark Treasury yields to their highest

level since November. The report doused hopes that the central

bank could implement as many as three rate cuts before year-end,

possibly starting as soon as its June policy meeting.

"There's a suggestion that the inflation numbers the Fed

really cares about - the PCE numbers - aren't going to be quite

as dire as CPI," Nick added. "And the parts of the market that

were most punished yesterday are having a bit of a comeback

today."

While the PPI data was more encouraging, the data did

indicate that inflation's journey down toward the central bank's

annual 2% target might be too meandering for the Fed.

New York Fed President John Williams said "there's no clear

need to adjust monetary policy in the very near term."

Richmond Fed President Thomas Barkin said the central bank

is not yet confident pricing pressures will continue to ease.

"Investors are starting to absorb the possibility that

maybe inflation could linger just a little bit longer and the

Fed's going to continue to remain patient, which is their big

word right now," said Joseph Sroka, chief investment officer at

NovaPoint in Atlanta.

Investors now switch their focus to first-quarter earnings

season, with results from three major U.S. banks - JPMorgan

Chase & Co ( JPM ), Citigroup Inc ( C/PN ), and Wells Fargo & Co ( WFC )

- due Friday morning.

According to preliminary data, the S&P 500

gained 37.85 points, or 0.73%, to end at 5,198.33 points,

while the Nasdaq Composite gained 271.84 points, or

1.68%, to 16,442.20. The Dow Jones Industrial Average

fell 7.54 points, or 0.02%, to 38,458.29.

CarMax ( KMX ) slid after the pre-owned vehicles retailer

missed analysts' estimates for fourth-quarter results and said

it might not meet its long-term vehicle sales target.

Globe Life ( GL ) tumbled after Fuzzy Panda Research

disclosed a short position in the company, alleging multiple

instances of insurance fraud.

Rent the Runway ( RENT ) skyrocketed after the apparel

rental company said it was betting on artificial intelligence to

power its current year growth.

Biotech firm Alpine Immune Sciences ( ALPN ) is to be

acquired by Vertex Pharmaceuticals ( VRTX ) for about $4.9

billion in cash, both companies said. Alpine shares surged.