The U.S. stock market closed higher on Thursday, with all three major indices posting gains, though the moves were uneven. The S&P 500 and Nasdaq Composite led the way, with the Nasdaq up 2.78%, driven by strong performances in tech stocks, particularly Microsoft, and a rebound in AI-related trades. In contrast, the Dow Jones Industrial Average, which had a volatile session, closed up 1.19%, with a notable drop of 1,153 points earlier in the day. The mixed performance across the indices suggests a cautious risk-on tone, with investors seemingly balancing optimism about tech and AI sectors against concerns over inflation and the Federal Reserve's policy stance.

The headlines highlight a day of mixed signals, with fears of the Fed falling behind on inflation weighing on the market, particularly in the energy sector, where oil prices spiked 7%. However, the broader market was supported by a rally in tech stocks, with the Nasdaq 100 gaining 3% as AI-related trades revived. The IPO market also saw mixed results, with Jersey Mike's stock sliding below its IPO price, while the broader market showed resilience, with stocks recovering from earlier sell-offs. The overall tone was one of cautious optimism, with investors navigating a complex landscape of economic concerns and sector-specific strengths.