Tech carries Wall Street to records, even as most stocks fall after discouraging inflation data
Coeur d'Alene Press | UPDATED 1 hour, 33 minutes AGO
NEW YORK (AP) — A rebound for technology stocks led Wall Street to records Wednesday, even though the majority of U.S. stocks fell following another discouraging update on inflation.
The S&P 500 rose 0.6% and topped its prior all-time high set at the start of the week. The Dow Jones Industrial Average dipped 67 points, or 0.1%, while the Nasdaq composite set its own record after climbing 1.2%.
Gains for tech stocks led the way, like Micron Technology’s 4.8% and On Semiconductor’s 11.1%. They had stumbled the day before after momentum suddenly halted for stocks riding excitement around artificial-intelligence technology.
Nvidia, the chip company that was among the first faces of the AI boom, rose 2.3% and was the strongest force pushing upward on the S&P 500 because of its immense size. Its CEO, Jensen Huang, got an invitation to join President Donald Trump on his trip to China, where they could discuss allowing shipments of Nvidia AI chips to the world’s second-largest economy.
Earlier in the day, Japan’s SoftBank Group Corp. said that its profit for the 12 months through March zoomed by nearly five-fold from the previous year as its AI investments paid off. China’s Alibaba Group said its AI and cloud growth accelerated in the latest quarter, and its stock that trades in the United States rose 8.2% even though its overall results fell short of analysts’ expectations.
But the majority of stocks outside of the technology industry fell, as pressure builds on Wall Street.
“Corporate earnings and AI momentum are acting as the market’s primary shock absorbers, but the road is getting significantly rougher,” said Tim Waterer, chief market analyst at KCM Trade.
A report on Wednesday showed that inflation at the U.S. wholesale level was considerably worse last month than economists expected. That followed a report on Tuesday showing accelerating inflation at the U.S. consumer level.
Prices are rising for fuel, transportation and all kinds of other things because of tariffs, bad weather affecting food prices and other reasons. But atop them all is the jump in oil prices created by the war with Iran, which has slowed the global flow of crude to customers worldwide.
On Wednesday, oil prices moved more modestly following big gains early in the week, and the price for a barrel of Brent crude oil fell 2% to settle at $105.63.