S&P 500 Sets Intraday Record on Tech Surge Despite Broad Market Weakness

The S&P 500 reached a fresh intraday record high Wednesday, CNBC reported, powered almost entirely by semiconductor and artificial intelligence stocks even as the broader market struggled with renewed inflation concerns.

The index gained roughly 0.4% on the session. The Nasdaq Composite added about 0.9%. The Dow Jones Industrial Average dropped 225 points, or 0.5%.

Tech’s Narrow Leadership Carries the Index

Chip names led the advance decisively. Nvidia shares climbed more than 2%. Micron Technology added more than 3%. The VanEck Semiconductor ETF rose approximately 2% on the day.

That strength masked significant weakness elsewhere. Around two-thirds of S&P 500 constituents were lower during the session, according to FactSet data cited by CNBC. Economically sensitive names including Home Depot and JPMorgan both declined.

Baird investment strategist Ross Mayfield told CNBC that investors view semiconductor demand as structural rather than cyclical. He noted that the AI buildout narrative has given chip stocks a kind of immunity from the broader macro turbulence, including oil price pressure linked to the ongoing Iran conflict.

Nvidia’s China Trip Adds Fuel to the Rally

Nvidia’s China Trip Adds Fuel

Wednesday’s chip-stock momentum followed news that Nvidia CEO Jensen Huang accompanied President Donald Trump on a diplomatic visit to China to meet President Xi Jinping. Mayfield told CNBC the trip raised investor hopes that Nvidia could eventually gain greater access to sell advanced AI chips in Chinese markets. He cautioned, however, that his own expectations for the meeting remain modest.

Inflation Data Clouds the Outlook

The enthusiasm unfolded against a difficult macro backdrop. The producer price index jumped 1.4% in April, the largest single-month increase since March 2022. Economists surveyed by Dow Jones had forecast only a 0.5% rise. On an annual basis, wholesale prices climbed 6%, also ahead of the 4.9% consensus estimate and the sharpest yearly gain since December 2022.

That followed Tuesday’s hotter-than-expected consumer price index reading, which had briefly pulled both the S&P 500 and Nasdaq off their highs.

Retail Stocks Take a Heavy Hit

Consumer-facing shares bore the brunt of the inflation fallout. The State Street SPDR S&P Retail ETF fell nearly 2% in midday trading and was on pace for its largest weekly decline since October. Optical retailer National Vision plunged 22% after missing first-quarter revenue estimates. Advance Auto Parts and Revolve each dropped more than 5%.

Mayfield warned the chip-stock momentum may not last indefinitely. If the macro environment deteriorates further, he told CNBC, investors may eventually choose to lock in gains rather than ride out a prolonged headwind.

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