U.S. Stocks Rally on Favorable Inflation Report

U.S. stocks continued their upward trend on Thursday after inflation data came in lower than expected, boosting investor confidence.

The Producer Price Index for final demand remained unchanged in July seasonally adjusted, according to the U.S. Bureau of Labor Statistics. However, on an unadjusted basis, the index for final demand increased 4.7 percent for the 12 months ended in July.

The Standard and Poor's 500 rose by 50.49 points, or 0.65 percent, to finish at 7,798.99, marking its sixth consecutive winning session. The Dow Jones Industrial Average added 69.81 points, or 0.13 percent, to close at 53,840.08.

The tech-heavy Nasdaq Composite was the standout performer, surging by 214.54 points, or 0.81 percent, to end at 26,803.03. The U.S. dollar traded flat to a touch higher against most of its major counterparts, with the Canadian dollar bucking the trend.