S&P 500 closes higher in rebound from inflation-fueled sell-off; Apple and Nvidia pop: Live updates

The S&P 500 jumped and the Nasdaq Composite closed at a record Thursday as tech shares climbed higher, rebounding from an earlier pullback over concerns of persistent inflation.

The S&P 500 gained 0.74% to close at 5,199.06. The Nasdaq Composite added 1.68% to end the day at 16,442.20, a record level. The Dow Jones Industrial Average underperformed and slipped 2.43 points, or 0.01%, at 38,459.08.

Technology stocks lifted the S&P 500 and Nasdaq Composite into positive territory midday Thursday as investors bought into the dip from earlier in the week.

A host of “Magnificent Seven” members rallied. Nvidia jumped 4.1%. Amazon added 1.7% and hit an all-time high in the session, and Alphabet gained more than 2%. Apple popped 4.3% after Bloomberg News reported that the company would transition its Mac product line to artificial intelligence-focused chips. The iPhone maker registered its best day since May 2023.

The Dow is on pace to end the week lower by 1.1%. Meanwhile, the S&P 500 trimmed its earlier losses following a hot CPI report, and it is down just 0.1% week to date. The tech-heavy Nasdaq is up 1.2% for the week.

The producer price index reading for March came in below estimates, providing some relief after Wednesday’s sell-off on a hot consumer prices report.

“The inflation data are noisy, and the market reflects that reality. There are clear signs of disinflation in lots of places, but the last mile of the inflation fight is going to be the most difficult,” said Jamie Cox, managing partner at Harris Financial Group, referring to the Federal Reserve’s ultimate goal of reaching 2% inflation.

Meanwhile, New York Fed President John Williams said during an event Thursday that there is no need for a policy change in the near term.

This comes on the back of a hotter-than-expected March consumer price index reading released Wednesday, which sparked a market sell-off. Minutes from the Fed’s meeting last month also showed that some officials remain concerned about inflation’s path toward the central bank’s 2% goal.

The early stages of earnings season continued Thursday, with CarMax falling more than 9% after disappointing on both top and bottom lines. Big bank earnings from JPMorgan, Wells Fargo and Citigroup are due on Friday.