U.S. stocks soared Thursday, chipping away at losses after suffering their worst three-day decline since late October.

The moves marked a comeback for U.S. stocks after a jittery start to the week. Signs that inflation may be picking up faster than expected have put investors on edge, pressuring shares in the priciest corners of the market. Data earlier this week showed consumer prices surged higher in April, while a separate report Thursday said producer prices posted their biggest annual jump since the Bureau of Labor Statistics began tracking the data in 2010.

Investors’ primary fear around inflation is that it may chip into companies’ profit margins and force the Federal Reserve to unwind its easy monetary policies sooner than expected. But so far, central bank officials have said they expect any jump in inflation to be transitory. A Fed policy maker on Wednesday said more data would be necessary for the central bank to…

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