PiCK

Tech Stocks Push S&P 500, Nasdaq to Fresh Records Despite Inflation Concerns

Source

Korea Economic Daily

Summary

Despite U.S. inflation concerns, strength in technology stocks pushed the S&P 500 index and the Nasdaq index to fresh record highs.
Morgan Stanley’s strategy team said the S&P 500 index could reach 8,300 within 12 months.
With both the PPI and CPI coming in above forecasts and rate-cut expectations weakening, the Philadelphia Semiconductor Index and the Magnificent Seven (M7) posted gains.

Forecast Trend Report by Period

PPI Tops Forecasts After CPI Surprise

Major U.S. stock indexes ended mixed on May 13, with technology shares leading gains despite persistent inflation concerns.

On the New York Stock Exchange, the S&P 500 rose 43.29 points, or 0.58%, to 7,444.25, while the tech-heavy Nasdaq Composite advanced 314.14 points, or 1.20%, to 26,402.34.

Both the S&P 500 and the Nasdaq closed at fresh record highs. The Dow Jones Industrial Average, however, fell 67.36 points, or 0.14%, to 49,693.20.

Bloomberg reported that Morgan Stanley’s strategy team, led by Chief U.S. Equity Strategist and Chief Investment Officer Mike Wilson, expects the S&P 500 to reach 8,300 within 12 months.

Meanwhile, a surge in energy prices fueled inflation worries. The U.S. Labor Department said the producer price index rose 6.0% in April from a year earlier, topping the market forecast of 4.9% and marking the biggest increase since December 2022.

After the consumer price index also came in above expectations, hopes for Federal Reserve interest-rate cuts weakened again.

Ross Mayfield, an investment strategist at Baird, told CNBC that investors appear to believe semiconductor demand and growth are structural enough that other cyclical macroeconomic factors will not materially change that dynamic.

Oil prices fell. Brent crude for July delivery settled at $105.63 a barrel, down 2.14% from the previous session. West Texas Intermediate crude for June delivery settled at $101.02 a barrel, down 1.13%.

Technology shares led the market. The Philadelphia Semiconductor Index jumped 2.57%. Investor sentiment also appeared to improve after the chief executive officers of Nvidia, Tesla and Apple joined U.S. President Donald Trump’s business delegation on his visit to China.

All of the Magnificent Seven stocks except Microsoft, which fell 0.63%, ended higher. Alphabet climbed 3.94%, Tesla gained 2.73%, Nvidia rose 2.29%, Meta added 2.26%, Amazon advanced 1.62% and Apple increased 1.38%.

Lee Su, Hankyung.com reporter, 2su@hankyung.com