Stocks Rebound on Cooler Inflation Data, Though Oil and Rates Remain Elevated Ahead of Earnings Season

US stocks rebounded after cooler-than-expected producer price data eased worries about rising inflation following a surprise uptick in consumer prices.

The tech-heavy Nasdaq gained 1.2% while the Dow traded just above flat. The 10-year Treasury yield reached its highest since November.

Oil prices slipped but stayed near six-month highs on worries about a potential attack on Israel by Iran. West Texas Intermediate traded below $86 per barrel.

Hopes are that first-quarter earnings can give momentum to stocks as reports trickle in, with banks set to kick off the season on Friday.

After hotter inflation data, Bank of America and Deutsche Bank economists pushed back projections for the Fed's first rate cut to December versus earlier forecasts for summer.