Stocks Hit New Highs as AI Trade Offsets Inflation: Markets Wrap

A rally in technology giants drove stocks to all-time highs, overshadowing data showing a resurgence in inflation that has fueled wagers the Federal Reserve will keep rates higher for longer.

Megacaps led gains in the S&P 500, with the chiefs from Nvidia Corp., Tesla Inc. and Apple Inc. joining President Donald Trump’s business delegation to China. A gauge of chipmakers climbed 3%. A drop in oil also helped sentiment. Treasuries lost steam as US wholesale prices accelerated to the fastest pace since 2022. A $25 billion sale of 30-year bonds saw investors snagging 5% yields on those maturities for the first time since 2007.