S&P 500 Hits Record High as Tech Stocks Rally Despite Inflation Fears
The S&P 500 and Nasdaq reached new all-time highs on Wednesday as technology stocks surged, even as inflation data disappointed. Semiconductor stocks led the market as investors bet on artificial intelligence demand.
Markets Rise Despite Economic Headwinds
The S&P 500 rose to a new all-time high on Wednesday as traders' enthusiasm for the technology trade overshadowed another hotter-than-expected inflation report. The broad market index rose 0.58% to 7,444.25, and the tech-heavy Nasdaq added 1.2% to end at 26,402.34. Both hit fresh intraday and closing records.
Chip Stocks Lead Broader Rally
Nvidia shares closed higher by more than 2%. Micron Technology gained more than 4%. The VanEck Semiconductor ETF (SMH) advanced 2%.
Divergence in Market Performance
Technology stocks outperformed from the rest of the market, as inflation fears spurred by higher energy prices due to the Iran war weighed on other sectors such as retail and banking. Roughly two-thirds of the S&P 500 were lower during the session. That included home improvement retailer Home Depot and others linked to the economic cycle such as key financial stock JPMorgan.