The stock market saw modest gains on Thursday, driven by a cooler-than-expected inflation report. The S&P 500 closed higher, boosted by a rally in Oracle that lifted investor confidence in the tech sector.

The S&P 500 rose by 0.38% to close at 6,045.26, positioning it less than 2% away from its all-time high. The Nasdaq Composite also gained 0.24% to end the day at 19,662.48, while the Dow Jones Industrial Average added 101.85 points, settling at 42,967.62.

Oracle's shares surged by 13% after reporting strong fiscal fourth-quarter results, surpassing expectations on both top and bottom lines. The company's CEO, Safra Catz, mentioned on a conference call that cloud infrastructure revenue is expected to grow by over 70% in the 2026 fiscal year, up from 52% growth in the previous quarter. This positive news from Oracle boosted the overall tech sector and the S&P 500.

However, Boeing, a Dow component, saw a nearly 5% decline after an Air India Dreamliner 787 crashed post takeoff with 242 passengers onboard.

Investor sentiment was further bolstered by encouraging economic data. The May producer price index in the U.S. economy rose by just 0.1% for the month, following a 0.2% decrease in April. This data, which was better than expected, led to a decrease in bond yields on Thursday.

Despite these positive factors, President Donald Trump's tariff threats were a cause for concern among investors. The market is closely monitoring trade policy developments, particularly between the U.S. and China, as negotiations between the two nations remain in focus. Trump indicated a willingness to extend the July 8 deadline for trade talks, but emphasized that such extensions might not be necessary.

U.S. and Chinese officials recently outlined a framework for future discussions in London, but the deal is pending approval from Trump and Chinese President Xi Jinping. Both countries agreed to ease restrictions on rare earth metals and foreign students.

Tom Hainlin, senior investment strategist at U.S. Bank Asset Management Group, emphasized the importance of resolving trade tensions for the market to reach new highs. He highlighted the need for signed trade deals to provide clarity and drive a sustainable breakout.