US Stock Market Extends Gains as S&P 500 Climbs for Fourth Consecutive Day

US equities rose again on Thursday, marking the fourth straight day of gains for the S&P 500, as optimism returned to Wall Street following a temporary easing in US-China trade tensions.

The S&P 500 advanced 0.4%, while the Dow Jones Industrial Average added 162 points, or 0.4%. The Nasdaq Composite edged up 0.1%.

Investors welcomed signs of progress after the Trump administration and Chinese officials reached a short-term pause in their ongoing tariff dispute, reducing immediate fears over inflation and slowing economic growth. The talks, led by Treasury Secretary Scott Bessent, helped fuel a wave of cautious optimism across markets.

Major technology companies continued to lead the rally. Nvidia and Tesla surged over 14% and 13%, respectively, while Meta Platforms climbed 10% for the week. Amazon, Alphabet, and other tech giants also posted strong gains, pushing the Nasdaq Composite up roughly 6% week to date. The S&P 500 is up 3.9% over the same period, while the Dow has added 1.7%.

“This is a market that has shifted to cautious optimism,” said Joe Cusick, senior vice president at Calamos Investments. “Recession fears are fading, but investors still face a wall of worry made up of macro and micro risks.”

Economic data released Thursday added to the market’s momentum. The producer price index (PPI) unexpectedly declined 0.5% in April, the largest monthly drop in five years. Retail sales rose 0.1%, matching expectations, though industrial production slipped slightly more than anticipated. The PPI results helped push bond yields lower, as traders speculated that inflation might remain subdued enough to prompt the Federal Reserve to cut interest rates later this year.

In corporate news, Foot Locker shares surged 84% after announcing a $2.4 billion merger with Dick’s Sporting Goods. Conversely, UnitedHealth shares fell 14% after reports surfaced of a potential Justice Department investigation, though the company said it had not been formally notified.

On the policy front, President Trump’s remarks urging Apple to reduce overseas production and bring more manufacturing to the US pressured Apple stock. However, some analysts urged investors not to overreact to such comments.

Elsewhere, CoreWeave stock rose 5% on better-than-expected earnings, but D.A. Davidson downgraded the AI infrastructure provider, questioning the sustainability of its returns.

Despite the positive momentum, market strategists warn that volatility could return. Wells Fargo noted that uncertainty surrounding trade policy, economic growth, and corporate earnings could still impact equity performance. JPMorgan CEO Jamie Dimon cautioned that while a recession may be avoided, it remains a possibility.

Bond yields declined across the board, with the 10-year US Treasury yield falling three basis points to 4.50%. Meanwhile, oil prices dropped again amid reports that the US and Iran may be nearing a nuclear agreement, which could ease supply concerns.

CNBC and Bloomberg contributed to this report.