S&P 500 and Nasdaq Hit Fresh Records on Tech Rally
CNBC reported Wednesday that both the S&P 500 record high and a fresh Nasdaq peak were achieved during the session, driven almost entirely by strength in technology and semiconductor names.
The S&P 500 gained 0.58% to close at an all-time high. The Nasdaq Composite outperformed with a 1.2% advance, also setting a new intraday and closing record. The Dow Jones Industrial Average was the lone laggard, dipping roughly 67 points, or about 0.14%.
Chip Stocks Drive the Charge
Semiconductor companies led the market higher on Wednesday. Shares of Nvidia and Micron Technology were among the standout gainers. The Nvidia rally drew additional attention after CEO Jensen Huang joined President Donald Trump on a diplomatic trip to Beijing for a summit with Chinese President Xi Jinping. The optics of a major chip executive traveling alongside the president fueled investor optimism around future demand.
Wealth manager Peter Mallouk, CEO of Creative Planning, told CNBC’s Power Lunch that chipmakers may still have significant room to grow. He argued the sector remains undervalued relative to the structural demand building ahead of available supply, and characterized the broader bull market as earnings-driven rather than speculative.
Hot Inflation Data Fails to Derail Equities
The session came despite another uncomfortable inflation reading. April’s producer price index rose 1.4% on a monthly basis, the sharpest single-month increase since March 2022 and well above consensus forecasts. Concerns about elevated energy costs weighed on several other sectors, but technology stocks absorbed the pressure and pushed higher regardless.
After-Hours Moves Add to the Picture
Post-market trading brought additional volatility. Cisco Systems shares jumped roughly 19% in extended hours after the networking company delivered third-quarter results and forward guidance that cleared Wall Street’s bar. The company also announced it would reduce its workforce by nearly 4,000 positions. Shares of Doximity fell around 18% after the healthcare platform issued revenue guidance for the current quarter and full year that disappointed analysts, compounding a fourth-quarter earnings miss.
What Comes Next
Futures pointed to modest further gains heading into Thursday’s open. S&P 500 and Nasdaq 100 futures each edged higher in early trading, while Dow futures added roughly 115 points. Traders are watching April retail sales figures and initial jobless claims data for the week ended May 9. New York Fed President John Williams is also scheduled to moderate a panel discussion Thursday afternoon, keeping Fed-watchers on alert.
Asia-Pacific markets traded mixed overnight as investors monitored the Trump-Xi summit for signals on the trajectory of trade policy between the world’s two largest economies.
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