US stocks rallied on Thursday amid a strong report on consumer prices. Both S&P 500 and Nasdaq jumped to all-time highs, thanks to CPI rising more than expected.

The report said consumer prices increased because of the stronger economic recovery.

In line with this, many wondered if the Federal Reserve will still maintain its ultra-soft policy, as doing so will raise the risk of overheating.

Anu Gaggar, senior research analyst at Commonwealth Financial Network, said: "the positive effects of the consumer price index are still there, but between the underlying effect and pent-up demand pressure, it probably doesn't provide a definitive answer to the debate on inflation. Instead, investors should monitor the bond market, especially since 10-year Treasury yields have returned to March levels, which indicates that the bond market is falling in line with the Fed's view that inflation is temporary and does not need a change in monetary stimulus."

Nine of the eleven major companies included in the S&P 500 index showed massive increase, with healthcare stocks leading the gains. Financial stocks, meanwhile, were the most unprofitable. All in all, S&P 500 climbed 0.6%.

As for Nasdaq, multinational companies such as Amazon, Microsoft and Apple made the largest contribution to further growth, pushing the index by 0.9%.

Investors should also pay attention to the G7 summit on Friday.