Wall Street is mixed following another discouraging inflation report and a recovery for tech stocks

Wall Street traded mixedly on Wednesday as a fresh inflation report heightened concerns, while tech stocks rebounded to support broader market gains. The S&P 500 climbed 0.3%, flirting with its all-time high set earlier in the week, though the Dow Jones Industrial Average dropped 0.5% to 239 points lower. The Nasdaq rose 0.9%, led by semiconductor stocks like Micron Technology (+3.2%) and On Semiconductor (+9.9%), which had faltered the prior day amid fading AI-driven momentum. Nvidia, a key AI chipmaker, led the S&P 500’s gains with a 2.8% rise, reinforcing its outsized influence as its CEO, Jensen Huang, was invited to join former President Donald Trump’s trip to China to discuss AI chip exports. Meanwhile, Japan’s SoftBank Group reported a near fivefold jump in annual profit, driven by AI investments, while Alibaba’s U.S.-traded stock surged 6.3% despite mixed quarterly results, highlighting AI and cloud growth. Outside tech, most stocks declined as inflation pressures mounted. A Wednesday report showed wholesale inflation worse than expected, following Tuesday’s consumer inflation acceleration. Rising fuel, transportation, and food costs—exacerbated by tariffs, bad weather, and geopolitical tensions—kept price pressures elevated. Oil prices, already volatile due to the war with Iran, dipped 0.9% to $106.84 per barrel but remained far above pre-war levels, with global inventories depleting at record speeds. The Federal Reserve’s plans for interest rate cuts this year now appear unlikely, with traders betting on potential hikes instead. Analysts warned that while AI and corporate earnings are propping up markets, broader economic headwinds are intensifying. The mixed performance underscored persistent challenges balancing inflation, geopolitical risks, and selective sector strength.