S&P 500, Nasdaq Hit Records on Tech Rally Amid Inflation Data

Technology stocks rebounded sharply Wednesday, propelling the S&P 500 and Nasdaq composite to record highs even as hotter-than-expected inflation data weighed on most U.S. shares.

The S&P 500 climbed 0.6 percent, or 43.29 points, to close at 7,444.25, surpassing its previous peak from earlier in the week. The Nasdaq composite gained 1.2 percent, or 314.14 points, to 26,402.34. The Dow Jones Industrial Average fell 67.36 points, or 0.1 percent, to 49,693.20.

Gains in semiconductors drove the advances. Micron Technology rose 4.8 percent, ON Semiconductor jumped 11.1 percent, and Nvidia increased 2.3 percent, providing the largest lift to the S&P 500 due to its market weight. The chipmaker's shares had declined Tuesday amid a pullback in artificial intelligence-related enthusiasm. Nvidia Chief Executive Jensen Huang received an invitation to accompany President Donald Trump on a trip to China, where discussions could address shipments of Nvidia AI chips.

Positive corporate updates bolstered the sector. Japan's SoftBank Group reported profits nearly quintupled for the fiscal year through March, fueled by AI investments. Alibaba Group noted accelerated growth in AI and cloud services...