Nasdaq Hits All-Time High Despite Inflation Shock: What Supported the Market?

On May 13 (local time), Wall Street closed mixed despite an inflation shock, buoyed by a rally in tech stocks. The S&P 500 rose 0.6% to a record 7,444.25, and the Nasdaq gained 1.2% to finish at 26,402.34. The Dow Jones Industrial Average slipped 0.1% to 49,693.20.

April’s Producer Price Index jumped 6% year-over-year and 1.4% month-over-month, well above forecasts, and the prior day’s Consumer Price Index came in at 3.8%, its highest in three years. These readings sharply reduced expectations for Federal Reserve rate cuts this year, and the 10-year Treasury yield approached 4.5%, weighing on interest-rate–sensitive sectors like financials, utilities and REITs.

On the policy front, the Senate confirmed Kevin Warsh as the next Fed chair, underscoring the possibility of a more hawkish monetary stance amid high inflation and the conflict in Iran. Brent crude dipped slightly to around $105 per barrel—still elevated compared to the pre-war $70 range—stoking concerns about slowing growth and consumer demand. Meanwhile, markets are watching a Beijing summit between former President Trump and President Xi Jinping, accompanied by Nvidia’s CEO, for potential signals on U.S.-China AI and semiconductor regulatory easing.

On the corporate side, Nvidia climbed over 2%, pushing its market capitalization past $5.5 trillion, while semiconductor names such as Micron and onsemi jumped 4%–11%, lifting the overall index. Conversely, American Electric Power fell 3% after announcing a large equity offering, and Birkenstock slid more than 10% on tariff pressures and disappointing results, dampening sentiment across defensive and consumer stocks. Overall, today’s trading underscored a further concentration in growth names—led by major AI players—amid the clash of energy and rate risks.