S&P 500, Nasdaq shake off inflation worries to end at records

4:20pm: Another record day

Stocks finished mixed on Wednesday, but the mood on Wall Street remained broadly upbeat as another rally in technology shares pushed the S&P 500 and Nasdaq Composite to fresh record highs despite hotter-than-expected inflation data earlier in the day.

The Nasdaq led the gains, climbing 1.2% to 26,402, while the S&P 500 rose 0.6% to close at 7,444. The Dow Jones lagged behind, slipping 67 points, or 0.1%, to 49,693 as investors rotated back into growth-oriented names.

Semiconductor stocks were once again at the center of the rally. Chipmakers including NVIDIA Corporation and Micron Technology surged 2.3% and 4.8% respectively as investors continued to pile into artificial intelligence-related trades, helping offset concerns sparked by stronger-than-expected producer price inflation data. Apple also closed at a new record high of almost $299 per share.

Markets largely brushed aside worries that persistent inflation could complicate the Federal Reserve’s path toward interest-rate cuts later this year.

Attention now shifts to earnings due after the closing bell, with results expected from Cisco Systems and Manulife Financial.

3:45pm: Proactive news headlines

Immunic Inc (NASDAQ:IMUX, FRA:10VA) said it remains on track to report top-line Phase 3 data for its lead multiple sclerosis drug candidate by the end of 2026 while advancing late-stage trials and strengthening its balance sheet through a recent $200 million financing. Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) said operations in Namibia are progressing toward production testing at the Kavango West 1X well, with testing expected to begin before the end of May. BioHarvest Sciences Inc (NASDAQ:BHST, FRA:8MV0) said it completed the first stage of its development agreement with SaffronTech, establishing a stable saffron cell bank aimed at creating a sustainable alternative to traditional saffron production. TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said it received conditional TSX Venture Exchange approval for a strategic private placement by Altius Resources that is expected to raise about $4.17 million. Miivo Holdings Corp (TSX-V:MIVO) appointed Nicholas Griffin as head of business development for North America as the company expands its commercial operations across the region. Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) said ongoing drilling at its Dumbwa copper deposit in Zambia continues to identify broad zones of near-surface mineralisation, including several high-grade copper intercepts. Meren Energy Inc (TSX:MER, STO:MER, OTCQX:MRNFF) reported strong first-quarter cash flow, reaffirmed its 2026 production guidance and highlighted growing demand for non-Middle East crude supplies amid geopolitical tensions. Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) said it has partnered with Ideon Technologies to launch a borehole muon tomography imaging program at the Lion Zone discovery within its Nisk polymetallic project in Quebec.

Story Continues

2:45pm: Market movers

Akamai Technologies Inc (NASDAQ:AKAM, XETRA:AK3) was upgraded to “Buy” by Bank of America, which said the company is increasingly being valued as an artificial intelligence infrastructure provider rather than a traditional content delivery network company. Rivian Automotive Inc (NASDAQ:RIVN) shares gained after its AI-focused robotics spinout Mind Robotics secured $400 million in funding at a $3.4 billion valuation led by Kleiner Perkins with backing from Volkswagen and Salesforce ventures. Compass Pathways (NASDAQ:CMPS) shares surged after the biotech company reported better-than-expected first-quarter results and continued regulatory progress for its depression treatment candidate COMP360. Wix shares tumbled after the website development platform posted mixed first-quarter results, with revenue roughly meeting expectations but earnings missing analyst forecasts. Birkenstock Holding PLC (NYSE:BIRK) shares fell sharply after the footwear maker reported second-quarter profit below expectations as tariffs and foreign exchange pressures weighed on margins despite solid revenue growth. Tower Semiconductor shares jumped after the chipmaker reported stronger-than-expected first-quarter revenue growth and issued an optimistic outlook for the quarters ahead. Alibaba Group (NYSE:BABA) shares rose after the Chinese technology giant reported accelerating growth in its cloud and artificial intelligence businesses despite profitability pressure from heavy investment spending. Oklo shares declined after the advanced nuclear technology company posted a wider quarterly loss driven by increased spending on its Aurora powerhouse development program. Immunic Inc (NASDAQ:IMUX, FRA:10VA) said it remains on track to deliver Phase 3 data for its lead multiple sclerosis treatment by the end of 2026 while strengthening its finances through a recent $200 million private placement.

1:45pm: Trump-Xi summit comes at pivotal moment

Wedbush Securities analyst Dan Ives is calling President Trump's two-day summit with Chinese President Xi Jinping in Beijing a defining inflection point for the AI revolution.

Ives argues that Jensen Huang's presence puts the architect of the AI hardware stack at the center of a high-stakes geopolitical negotiation, with Nvidia's access to China at the core of the tech sector's interest -- the company's most advanced chips have faced tightening US export restrictions since 2022, while China has pushed to build domestic alternatives such as DeepSeek.

Wedbush expects the summit to prove "constructive," with Ives framing an improving geopolitical backdrop, Nvidia's upcoming earnings, and accelerating enterprise AI adoption as a strongly positive setup for chips, cloud infrastructure, and AI software. "We view this as a positive moment for U.S. and China," he wrote.

12:10pm: 'Balancing on borrowed stability

The S&P 500, which had largely shrugged off rising yields for about a month, finally gave in and slipped before quickly recovering as dip buyers stepped in around the 7,340 level, noted Swissquote's Ipek Ozkardeskaya.

That said, the index is rebounding heading into afternoon trading, around 0.5% above opening levels.

Still, the rebound did little to dispel broader concerns this morning. "The market is so crowded with dip buyers that the dips barely become perceptible," Ozkardeskaya commented Wednesday.

"But every new point on the S&P 500 and Nasdaq feels like another Jenga block balancing on borrowed stability."

10:45am: PPI surges above forecast

US producer prices came in hotter than expected, signaling renewed inflationary pressure at the wholesale level.

The Producer Price Index (PPI) rose 6% year over year, well above expectations of 4.9%, while increasing 1.4% month over month versus a 0.5% forecast. Core PPI, which strips out food and energy, climbed 5.2% annually compared with estimates of 4.3%, and advanced 1% on a monthly basis versus a 0.3% consensus.

The data suggests stronger-than-anticipated pipeline inflation, which could feed through to consumer prices in the coming months and complicate the outlook for monetary policy.

10am: Stocks open lower

New York's main stock indexes have opened mostly lower, with the Dow Jones dropping 0.4% and the S&P 500 slipping 0.1%.

The tech-powered Nasdaq Composite started higher but has gone jsut below flat.

Dragging on the Dow are falls for IBM, Salesforce and Home Depot, all down over 2%, with Amex, Microsoft, Disney and Nike next.

Leading the Nasdaq 100 risers is semiconductor group Marvell Technology, up 8%, followed by peers Texas Instruments, Micron Technology and Analog Devices.

8am: Dow futures in red, Nasdaq's green

Wall Street shares were set for a mixed start on Wednesday as investors prepare to wait for news from Donald Trump’s visit to China.

Stock futures pointed in different directions ahead of the opening bell, with Dow Jones futures down 114 points or 0.2% at 49,755, while S&P 500 futures were up 0.2% and Nasdaq futures climbed 0.7%, suggesting renewed demand for technology shares.

The mixed tone followed a subdued session the day before, when the Nasdaq and S&P 500 slipped 0.7% and 0.2%, but the Dow edged 0.1% higher.

Investors were reacting to firmer-than-expected core US inflation data and higher oil prices.

In early morning trading, WTI crude traded just below US$102 a barrel, after recovering from overnight weakness, with concerns over the US-Iran conflict continuing to underpin energy markets as the WSJ reported that the UAE had made retaliatory military attacks on Iran in previous weeks, raising concerns that the oil-producing nation could become a clearer target if Tehran's ceasefire with Washington is abandoned.

President Trump arrived in Beijing on Wednesday night local time, ahead of a meeting with Chinese counterpart Xi Jinping tomorrow. Talks are expected to cover trade, artificial intelligence, Taiwan and energy security, with the conflict involving Iran also likely to feature heavily.

Among the executives travelling with Trump are Apple chief executive Tim Cook, Tesla boss Elon Musk and senior leaders from Boeing, BlackRock, Goldman Sachs, Qualcomm and Visa.

The US dollar extended gains, with the DXY index hitting a week's high.

In the absence of major earnings updates before Nvidia reports next week, other analysts said markets could drift in the near term as attention shifts from geopolitics towards US-China diplomacy, especially if any major escalation in the Middle East is avoided during the visit.

US earnings boom

The earnings season boom saw the S&P 500’s forward earnings soar 2.5% for its best-ever weekly non-crisis gain in 32 years, according to Yardeni Research.

Forward earnings are rising faster in response to Q1 earnings reports, with an "extraordinary" 51-week streak of gains that recently surpassed its prior crisis-recovery string of 46 weekly gains following the 2008 great financial crisis.

"The next achievement could be surpassing the longest string of gains in the S&P 500’s 32-year forward earnings history. That was its 77-week of consecutive gains, which ended over two decades ago during the September 23, 2004 week."

Yardeni said the AI capex and US-onshoring boom have led to a record high in forward revenues and earnings forecasts for nine of the S&P 500’s 11 sectors.

"Even the biggest laggards, Energy and Materials, are fast improving now... The rising tide is lifting more sectors' boats on the topline, too. Turning to their forward revenues, nine of the 11 sectors are at record highs. Notably among them, the long-suffering Materials sector just posted record high forward revenues for the first time since mid-2023. Prior to that appearance, the sector was out of the record high forward revenues club for 15 long years."

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