Stocks rose on Thursday as investors continued to shake off a tough start to September and bought the dip in tech stocks in anticipation of a rate cut by the Federal Reserve next week.

The S&P 500 gained 0.75% to close at 5,595.76, marking its fourth winning day. The Dow Jones Industrial Average added 235.06 points, or 0.58%, to end at 41,096.77. The Nasdaq Composite added 1%, closing at 17,569.68.

The S&P 500 has cut its September losses to just 0.9% and sits just about 1.3% from a new record.

Shares of megacap tech and semiconductor names continued to rally on Thursday, boosting the market during afternoon trading. Artificial intelligence powerhouse Nvidia jumped 1.9%, while Alphabet and Facebook parent Meta Platforms each gained more than 2%.

Inflation data released this week served as the final data points ahead of the Federal Reserve's Sept. 17-18 meeting, where central bankers are widely expected to announce a quarter-percentage-point interest rate cut.

Thursday's producer price index, which measures the average change in prices businesses receive for their goods and services, reflected a 0.2% rise in wholesale prices in August. That is in line with expectations. The PPI report follows consumer inflation data released Wednesday that indicated an uptick in core prices, but also that inflation in August declined to its lowest level since February 2021.

Weekly jobless claims data released Thursday also reflected a marginal increase in the number of individuals filing for unemployment benefits, rising to 230,000 for the week ending Sept. 7.

Investors are coming off a choppy trading session that was initially weighed down by the consumer price index report before it saw a late-day advance in tech shares that helped the major benchmarks rebound from their lows.

"Generally, folks are in wait-and-see mode ahead of the Fed next week," Edward Jones senior investment strategist Mona Mahajan said, noting that markets have been volatile amid a seasonally weaker September and that she still expects "cooling, but not collapsing" economic growth.

"We think this choppiness could continue," Mahajan continued. "But if we are in this backdrop where the Fed is cutting rates and inflation is moderating gradually — and we can pull off a soft landing — then, historically, markets should continue to perform well in that backdrop. For us, that remains the base case."

Correction: An earlier version misstated the likelihood of a 50-basis-point rate cut.

Stocks rally on Thursday

The S&P 500 gained 0.75% to settle at 5,595.76, while the Nasdaq Composite jumped 1.00% to close at 17,569.68. The Dow Jones Industrial Average added 235.06 points, or 0.58%, to end at 41,096.77.

— Pia Singh

S&P 500 can make 'marginal new high' going into Fed meeting, BTIG says

The S&P 500 could reach a new high heading into the highly anticipated Federal Reserve meeting next week amid a seasonal period for equities, according to BTIG.

"Overall, we continue to think SPX can make a marginal new high into or around next week's FOMC before a tougher period begins once again into October," analyst Jonathan Krinsky said in a Thursday note, adding that megacap tech will likely see a consolidation as investors rotate into laggards.

Krinsky added that small-cap stocks and energy names should have room for further upside, referring to the Russell 2000 ETF (IWM) and SPDR S&P Oil & Gas Exploration (XPO).

— Pia Singh

AI industry will need 'public-private collaboration,' Nvidia CEO says

Nvidia CEO Jensen Huang said on CNBC's "Halftime Report" that the burgeoning artificial intelligence industry is going to need to work with government entities as it continues to grow.

"There's probably going to have to be public-private collaboration in this area because the rate of growth is really quite high," Huang said. He acknowledged that training AI models takes up huge amounts of energy, but said productivity gains from AI could help save energy down the line.

The remarks came after a meeting at the White House with AI leaders and the Biden administration. Huang said he was not worried about the U.S. doing less to support AI than China.

"This administration is determined to do the most and do it the fastest," he added.

— Jesse Pound

Communication services leads sector gains Thursday

Communication services advanced 1.7% Thursday, making it the biggest outperformer in the S&P 500.

Warner Bros. Discovery's 6.6% jump led the sector higher. Meta Platforms and Alphabet shares also advanced around 2% each. For the week, the sector is higher by 2.9%.

The energy sector is higher by 1%, making it the following best sector for the day. However, energy is the only sector still negative week to date.

— Hakyung Kim

Moderna drops on cost-cutting plans

Moderna shares fell around 17% after the biotech company announced it plans to cut expenses by about $1.1 billion by 2027, saying it is going to "pace ourselves" in new research and development spending.

That said, Moderna also said it expects 10 new product approvals through that year. In 2024, the stock has plummeted more than 33%.

— Sean Conlon

Household net worth hits a record

Net worth for American households hit a fresh record of $163.8 trillion in the second quarter, a 1.7% increase bolstered by a big jump in real estate holdings, the Federal Reserve reported Thursday.

The total was nearly $11 trillion higher than a year ago as the value of real estate holdings jumped $1.8 trillion and stock holdings increased $700 billion.

Debt levels also rose. Total household debt moved higher by 3.2%, up 0.4 percentage points from the first quarter, while business debt increased 3.8%, down from 4% in the prior period. Federal government debt accelerated 6.3%, while state and local government debt surged 6%, nearly double the pace of Q2.

— Jeff Cox

Kroger, Petco and Moderna among stocks making midday moves

Check out the companies making headlines in midday trading:

• Kroger — Shares of the supermarket chain rallied more than 4%. Kroger reported mixed fiscal second-quarter results, posting adjusted earnings that beat expectations by 2 cents a share. Revenue came up shy of Wall Street's estimates.
• Petco — Shares of the pet retailer soared 14%. That builds on Wednesday's postearnings rally of nearly 33%, which marked the stock's best day on record.
• Moderna — The stock plummeted nearly 16% after the drugmaker said it will cut $1.1 billion in expenses by 2027. Moderna also said it plans to launch 10 new products through 2027, but will also pause or stop work on some of the products in its pipeline.

For the full list, read here.

— Alex Harring

U.S. crude oil prices jump on Thursday

U.S. crude oil jumped more than 2%, trading above $69 per barrel on Thursday after Hurricane Francine disrupted oil production and threatened U.S. output.

Oil futures rose more than 2% in the previous session. As of 1 p.m. Central time Wednesday, nearly 675,000 barrels per day of oil were shut in the Gulf of Mexico, an area disturbed by the hurricane, Andy Lipow, president of Lipow Oil Associates, told Reuters.

Here is a look at energy prices today:

• West Texas Intermediate October: $69.44 per barrel, up $2.14, or 3.18%
• Brent November contract: $72.51 per barrel, up $1.90, or 2.66%
• Natural Gas October contract: $2.34 per thousand cubic feet, up 3.08%

— Pia Singh

Gilead gains on positive study results for HIV drug

Shares of Gilead rose around 2% in morning trading after the biopharmaceutical company's twice-yearly HIV drug, lenacapavir, reduced infections by 96% in a phase three trial.

The results pave the way for lenacapavir's likely approval from the U.S. Food and Drug Administration.

The stock has increased nearly 2% this year and more than 28% over the past three months.

— Sean Conlon

Communications services sector leads S&P 500 gains

The S&P 500 communications services sector rose 1% on Thursday to lead the S&P 500 higher. Warner Bros. Discovery, Meta Platforms and Charter Communications were the best performers in the space.

This would mark the sector's fourth straight daily gain.

— Fred Imbert

Stocks open little changed on Thursday

The S&P 500 opened just below flat, while the Dow Jones Industrial Average opened about 7 points lower, or less than 0.1%, shortly after 9:30 a.m. ET. The tech-heavy Nasdaq was 0.1% higher, on the other hand.

— Pia Singh

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

• Alaska Air Group — Shares gained 5% after Alaska Air Group raised its third-quarter outlook, citing strong summer demand. The airline guided for earnings per share in the range of $2.15 to $2.25, greater than prior guidance of $1.40 to $1.60 in earnings per share.
• Moderna — Shares shed more than 6% after the drugmaker announced plans to slash expenses by $1.1 billion by 2027. Moderna also said it anticipates the launch of 10 new products through 2027.
• Oxford Industries — Shares dropped 10% after the clothing company behind Tommy Bahama posted second-quarter figures that missed expectations. Oxford Industries posted adjusted earnings of $2.77 per share, lower than the FactSet consensus estimate of $3 in earnings per share. Revenue of $419.9 million came in below the $438.2 million forecast.

Read the full list here.

— Sarah Min

PPI rises 0.2% in August

The producer price index, a measure of wholesale inflation, rose 0.2% in August. That matched a Dow Jones consensus forecast. The report comes after a mixed consumer price index report released Wednesday.

— Fred Imbert

European Central Bank cuts interest rates again amid cooling inflation

The European Central Bank on Thursday reduced interest rates by 25 basis points, marking the second time it has cut rates this year.

The ECB's key interest rate, which helps to price all sorts of loans and mortgages across the bloc, now stands at 3.5%, down from 3.75%. The move, which does not come as a surprise, comes after a period of slow economic growth and cooling inflation across the euro zone.

For more on the ECB's decision, read here. The rate decision will be followed by a press conference at 1:45 p.m. London time.

— Pia Singh, Sam Meredith

Nvidia's gains continue in premarket trading

Nvidia shares climbed nearly 0.9% higher in premarket trading, continuing the chipmaker's rally that almost singlehandedly led Wednesday's market turnaround after CEO Jensen Huang touted the company's demand.

"We are ramping Blackwell. And it's in full production. We'll ship in Q4 and scale it, start scaling in Q4 and into next year," Huang said at the Goldman Sachs Communacopia + Technology Conference in San Francisco. "The demand on it is so great, and everybody wants to be first."

The stock rallied 8.15% on Wednesday.

— Pia Singh

McDonald's extends its value meal in most U.S. markets

McDonald's said Thursday it will extend its $5 value meal into December in most U.S. markets.

It is a part of the fast-food chain's efforts to win back lower-income consumers, as the broader restaurant sector focuses on value this summer and diners cut back on restaurant spending amid persistent inflation. The value meal offers a McDouble or McChicken sandwich, small fries, four-piece chicken nuggets and a small soft drink for $5. For more, read here.

McDonald's shares hovered just below flat in premarket trading. The stock is down about 2.1% for the year but has jumped nearly 13.9% this quarter.

— Pia Singh, Kate Rogers

Wednesday's rally a good sign of market stability, Vital Knowledge says

Stocks roared back Wednesday after suffering steep losses at one point during the session.

"The remarkable rebound rally yesterday stunned investors and left many wondering if it was just an ephemeral head fake or the start of a more sustained period of stability (we're more in the latter camp as macro fundamentals remain supportive, but elevated valuations remain a huge obstacle)," said Adam Crisafulli of Vital Knowledge.

— Fred Imbert

European markets open higher

European stocks rallied at the open Thursday as investors in the region await the latest monetary policy decision from the European Central Bank.

The pan-European Stoxx 600 was up 1.07% in opening trade, with all sectors and major bourses trading in the green. Tech and mining stocks jumped 2.5% and 2.05%, respectively.

The European Central Bank, or ECB, is expected to slash rates again by 25 basis points on Thursday, a move that would mark the first cut since June, when it described the potential for a September reduction as "wide open."

— Karen Gilchrist

Oxford Industries shares fall after hours

Shares tumbled more than 9% in extended trading after Oxford Industries posted fiscal second-quarter results that missed expectations and issued disappointing guidance.

The high-end clothing company behind Tommy Bahama and Lilly Pulitzer posted adjusted earnings of $2.77 per share, lower than the FactSet consensus estimate of $3 in earnings per share. Revenue of $419.9 million came in below the $438.2 million forecast.

— Sarah Min

Stock futures open lower

U.S. stock futures inched lower Wednesday night.

Dow Jones Industrial Average futures fell 28 points, or 0.07%. S&P 500 futures and Nasdaq 100 futures dipped 0.09% and 0.19%, respectively.

— Sarah Min