US sharemarkets rose on Wednesday, with the S&P 500 and Nasdaq Composite closing at fresh record highs as investor enthusiasm for artificial intelligence and semiconductor stocks outweighed concerns about inflation and the Iran war.
The S&P 500 gained 0.58% to finish at 7,444.25, while the Nasdaq Composite climbed 1.2% to 26,402.34. Both indices reached fresh intraday and closing records during the session. The Dow Jones Industrial Average fell 67.36 points, or 0.14%, to 49,693.20.
Technology stocks led the market higher, with Nvidia rising more than 2% and Micron Technology gaining more than 4%. The VanEck Semiconductor ETF advanced 2% as investors continued rotating into artificial intelligence-linked companies.
Semiconductor stocks have driven much of Wall Street’s recent gains, with investors continuing to back companies tied to AI infrastructure and data centre demand despite rising macroeconomic and geopolitical risks.
Nvidia also remained in focus after chief executive Jensen Huang joined President Donald Trump during a visit to China, where Trump met Chinese President Xi Jinping. Investors viewed the trip as a possible sign of improving conditions for Nvidia’s access to Chinese markets ahead of the company’s quarterly results due on May 20.
Markets also absorbed another stronger-than-expected inflation report. US producer prices rose 1.4% in April, well above expectations for a 0.5% increase and marking the largest monthly rise since March 2022. Annual wholesale inflation accelerated to 6%, also exceeding forecasts.
Australian Market Outlook
Australian shares are expected to open lower after another strong session for US technology stocks was offset by ongoing inflation concerns and weakness across broader cyclical sectors.
S&P/ASX 200 futures are down 22 points, or 0.3%, to 8,636.
Local technology stocks may find support from continued gains across semiconductor names overnight, while broader market sentiment is likely to remain cautious as investors assess the implications of persistent inflation and higher energy prices.
Bank of America’s bullish outlook for Nvidia, Micron Technology and Marvell Technology may also support sentiment towards AI-related stocks locally.
Locally, investor attention will turn to Commonwealth Bank’s third-quarter trading update, while results are also due from AngloGold Ashanti. Accent Group is scheduled to hold an investor day.
On the economic front, the first-quarter wage price index will be released at 11.30am AEST and is expected to provide further insight into labour market pressures and the outlook for domestic interest rates.
Investors will also continue monitoring developments ahead of Nvidia’s quarterly results next week, which are expected to remain a key focus for global equity markets.
