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Hot inflation sinks rate cut hopes as US stocks hit record closing highs on chip rally
Economy
Published on 13 May 2026
Producer prices spike, but chips still push markets to records
US stocks climbed to record closing highs as AI-linked tech and chip shares drove gains in both the S&P 500 and Nasdaq. The rally faced pressure from hotter-than-expected inflation data, with a jump in producer prices reviving expectations of prolonged Federal Reserve tightening. Investors also weighed Trump-Xi talks and rising geopolitical risks, alongside a Morgan Stanley S&P target upgrade.
- S&P 500 and Nasdaq closed at record highs
- AI tech and chip stocks led the rally
- Hot inflation data lifted producer prices, denting rate cut hopes
- Fed tightening fears grew amid global political and trade watch
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times