Tech stocks ripped higher on Wednesday despite a sharply hotter-than-expected April Producer Price Index reading that rekindled inflation anxieties and rate-hike fears, as strength in semiconductors fueled investor sentiment.
On the macro front, April wholesale prices jumped 1.4% month-over-month, nearly triple the 0.5% consensus, and headline PPI surged to 6% year-over-year against expectations of 4.8%, the hottest print in over three years.
Core PPI rose 1.0% versus 0.4% estimates, underscoring that Iran-war-driven energy inflation is now bleeding into broader pipeline pricing.
Rate traders quickly revised Fed policy path, with fed funds futures now pricing a hike more likely than a hold by year end.
Across U.S. equity markets by midday Wednesday, the tape was a classic split – large-cap growth higher, rate-sensitive cyclicals and small caps lower.
The S&P 500 rose 0.5% to 7,437.67 while the Dow Jones Industrial Average slipped 0.4% to 49,571, dragged by 189 points of weakness in its bank and industrial components.
The Nasdaq 100 outperformed with a 0.7% gain to 29,265.56, leaning on a strong semis and clean-energy bid alongside Nvidia’s continued march. The Russell 2000 slipped 0.1% to 2,839.74.
Wednesday’s Performance In Major US Indices
According to the Benzinga Pro platform:
Tech And Solar Defy The PPI Shock, Banks And Utilities Fall
The losers were a one-line story: yield up, rate-sensitives down.
Management also unveiled “Ford Energy,” a new battery and grid-storage subsidiary slated for $1.5 billion in capex, alongside a Universal EV platform targeting a $30,000 midsize pickup for next year.
Wednesday’s Russell 1000 Top Gainers
Wednesday’s Russell 1000 Top Losers
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