U.S. stocks showed strength on May 13, driven by a rally in semiconductor shares, despite concerns over inflation due to high oil prices.
The Dow Jones Industrial Average closed down 67.36 points, or 0.14%, at 49,693.20. The S&P 500 index rose 43.29 points, or 0.58%, to finish at 7,444.25, while the Nasdaq composite gained 314.14 points, or 1.20%, closing at 26,402.344.
Both the S&P 500 and Nasdaq set new all-time highs with their gains on this day.
The surge in tech stocks was fueled by news that Jensen Huang, CEO of Nvidia, joined a delegation visiting China led by President Donald Trump. This development sparked increased buying interest in technology shares. Semiconductor stocks have continued to rise amid renewed enthusiasm for artificial intelligence (AI) investments.
Among the 'Magnificent Seven' large tech stocks, Nvidia, a leader in AI, closed up 2.29% or $5.05 at $225.83. Other tech giants, including Alphabet (up 3.94%), Apple (up 3.28%), and Tesla (up 2.73%), also saw gains. In contrast, Microsoft fell 0.63%.
Ford shares surged 13.18% as renewed attention on its partnership with Chinese battery manufacturer CATL emerged on Wall Street. However, financial stocks like JPMorgan Chase (down 1.52%), Visa (down 1.87%), and American Express (down 1.50%), along with retailers like Home Depot (down 2.55%), struggled due to inflation concerns.
The U.S. Labor Department reported that the Producer Price Index (PPI) rose 1.4% in April compared to the previous month, marking the highest increase since March 2022 (1.7%). This figure significantly exceeded analysts' expectations of a 0.5% rise. Year-over-year, the PPI increased by 6.0%, the highest since December 2022 (6.3%).
Peter Maluk, CEO of Creative Planning, told CNBC, "This bull market has been a long and sustained rally primarily led by tech stocks. This growth is based on expected earnings and is not a speculative bubble. There appears to be substantial demand remaining as supply struggles to keep up, indicating significant upward potential ahead."
International oil prices fell, attributed to rising expectations surrounding negotiations on Iran issues following the U.S.-China summit.
On the Intercontinental Exchange, July Brent crude futures settled at $105.63 per barrel, down 2.0% from the previous day. Meanwhile, June West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange closed at $101.02 per barrel, a decline of 1.1%.
* This article has been translated by AI.
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