04:24 PM EDT, 09/12/2024 (MT Newswires) -- US benchmark equity indexes closed higher Thursday as markets evaluated the latest economic data, including the official producer prices report for August.

The Nasdaq Composite rose 1% to 17,569.7, while the S&P 500 advanced 0.8% to 5,595.8. The Dow Jones Industrial Average gained 0.6% to 41,096.8. All sectors closed higher, led by communication services' 2% surge.

In economic news, producer prices in the US grew more than expected last month as wholesale services costs rebounded, the Bureau of Labor Statistics reported. On Wednesday, data from the BLS showed that US consumer inflation rose as expected in August on a sequential basis, while the annual metric logged the smallest increase since February 2021.

The PPI and consumer price index data reinforce the need for a "tempered path of policy easing" by the Federal Reserve, Stifel said in a note to clients.

Weekly applications for unemployment insurance in the US increased unexpectedly, government data showed.

The odds of policymakers delivering a 25-basis-point interest-rate cut on Wednesday declined to 67% Thursday from 86% Wednesday, while the probability of a more aggressive 50-basis-point reduction rose to 33% from 14%, according to the CME FedWatch tool.

The US 10-year yield increased 3.2 basis points to 3.69%, while the two-year rate added 1.6 basis points to 3.66%.

In company news, Warner Bros. Discovery ( WBD ) signed a multiyear distribution agreement with Charter Communications ( CHTR ) that integrates linear video and streaming services. Warner Bros. shares jumped 10%, the best performer on the S&P 500 and the Nasdaq, while Charter rose 3.6%, among the top Nasdaq gainers.

Kroger ( KR ) was the second-top performer on the S&P 500, up 7.2%, as the grocery store operator raised the midpoint of its full-year identical sales forecast after reporting mixed second-quarter results.

Moderna ( MRNA ) said it plans to cut back on its research and development spending as the company looks to save costs and prioritize the launch of new products already in the pipeline. The drugmaker's shares plunged 12%, the steepest decline on the S&P 500 and the Nasdaq.

West Texas Intermediate crude oil surged 2.9% to $69.23 a barrel as the International Energy Agency cut its global oil demand growth outlook for 2024, driven by weakness in China.

"With the steam seemingly running out of Chinese oil demand growth, and only modest increases or declines in most other countries, current trends reinforce our expectation that global demand will plateau by the end of this decade," the IEA said.

On Tuesday, the Organization of the Petroleum Exporting Countries lowered its 2024 and 2025 world oil demand projections.

Gold rose 1.7% to $2,586 per troy ounce, while silver advanced 4.4% to $30.21 per ounce.