Tech Stocks Prop Up Wall Street as S&P 500 and Nasdaq Hit Record Highs
NEW YORK, KOMPAS.com - The S&P 500 index rose to a new all-time high at the close of trading on the New York Stock Exchange, or Wall Street, on Wednesday (13/5/2026) local time, as investor enthusiasm for technology stocks overshadowed the impact of inflation reports that came in higher than expected.
The broader market index, the S&P 500, climbed 0.58 per cent to 7,444.25, while the tech-heavy Nasdaq surged 1.2 per cent to 26,402.34. Both indices set new intraday and closing records.
Meanwhile, the Dow Jones Industrial Average fell 67.36 points, or 0.14 per cent, to 49,693.20.
Technology stocks outperformed other sectors in the market, as inflation concerns triggered by rising energy prices due to the Iran war burdened other areas such as retail and banking.
In contrast, around two-thirds of the stocks in the S&P 500 actually weakened during the trading session, according to FactSet data. Declining stocks included home improvement retailer Home Depot and economically cyclical stocks like JPMorgan.
"Chip stock trading is currently moving with its own momentum. Investors seem to view demand and growth in this sector as highly structural, so more cyclical macroeconomic factors do not significantly alter its prospects," said Baird investment strategy analyst Ross Mayfield to CNBC.
"Amid various global situations, particularly the oil price shock, investors feel safer sheltering in those stocks because the AI boom will come regardless of what happens."
The movement in technology stocks on Wednesday followed Nvidia CEO Jensen Huang accompanying US President Donald Trump on his visit to China to meet President Xi Jinping.
According to Mayfield, the move sent a positive signal to investors regarding the possibility of Nvidia resuming sales of its AI chips in the Chinese market, though he admitted his expectations for the outcome of the meeting were still "quite limited."
Semiconductor stocks have indeed continued to soar recently, leading the overall market’s push to new record levels amid renewed enthusiasm for AI-based trading.
However, even though chip stocks and companies involved in AI infrastructure development currently appear to be "moving on their own," Mayfield is not convinced the momentum will last long.
"At some point, investors may start to see that macroeconomic conditions are truly turning against them. At that time, they might think, ‘It’s time to take some profits, because the hope that the war will end quickly clearly isn’t materialising,’" he said.
For context, the S&P 500 and Nasdaq had fallen from their record highs on Tuesday following the release of US consumer inflation data that was hotter than expected.
On Wednesday, the producer price index (PPI) jumped 1.4 per cent in April. This was the largest monthly increase since March 2022 and far exceeded economists’ expectations surveyed by Dow Jones at 0.5 per cent.
Additionally, wholesale inflation rose 6 per cent year-on-year, the largest increase since December 2022. The figure also surpassed the market consensus of 4.9 per cent.