Nasdaq Index: AI Momentum Keeps Stock Market Stable Despite Hot PPI

• Producer Price Index surged 1.4% monthly versus 0.5% expected, marking 6% annual inflation—the highest since late 2022—following a similarly hot 3.8% CPI print the day before
• Nvidia and semiconductor stocks outperformed significantly, with Micron jumping over 5% on AI enthusiasm and reports of Nvidia's CEO joining Trump on a China visit
• Rate-sensitive sectors including financials, retailers, and housing faced immediate pressure as the 10-year Treasury yield hit its highest level since July and the 30-year yield pushed above 5%

Market Summary: AI Stocks Buoy Nasdaq Amid Hot Inflation Data

Key Market Movements

U.S. equity markets diverged sharply on Wednesday, May 13, 2026, following hotter-than-expected inflation data. The Dow Jones Industrial Average fell nearly 300 points, while the S&P 500 hovered near flat. The Nasdaq remained positive, supported exclusively by AI and semiconductor stocks.

Critical Data Points

Producer Price Index (PPI) surged 1.4% monthly versus 0.5% expected, with annual wholesale inflation hitting 6%—the strongest reading since late 2022. This followed Tuesday's April CPI at 3.8% annually. The 10-Year Treasury yield climbed to 4.49%, its highest since July, while the 30-year yield exceeded 5%.

Key Companies and Sectors

Nvidia led semiconductor gains, rising 2.33% on AI momentum. Reports of CEO Jensen Huang joining Trump on a China visit sparked additional buying. Micron Technology jumped over 5%, and the VanEck Semiconductor ETF advanced strongly. Rate-sensitive sectors including financials, retailers, and housing stocks suffered immediate pressure.

Market Implications

Two consecutive hot inflation prints significantly diminished Fed rate cut expectations. June WTI crude oil remained above $100, feeding persistent inflation concerns and limiting Fed flexibility. The stark sector divergence raises sustainability questions about the AI rally carrying the Nasdaq while broader market fundamentals deteriorate under elevated rates and energy costs.

Technical levels to watch: Nasdaq pivot at 26,049.26, S&P 500 resistance at 7,428.97, and Dow support at 49,419.39 after five consecutive tests.