US stocks were mixed on Wednesday as investors weighed another hotter-than-expected inflation report while watching developments from President Trump’s trip to China. A rebound in semiconductor and AI stocks helped fuel gains in the Nasdaq and S&P 500, even as rising Treasury yields pressured broader sentiment and kept the Dow in negative territory.
The tech-heavy Nasdaq Composite climbed 1%, recovering from Tuesday’s sharp chip-sector sell-off as investors rushed back into artificial intelligence leaders and growth stocks. The S&P 500 gained 0.4%, while the Dow Jones Industrial Average slipped 0.4% as concerns mounted that persistent inflation could delay any potential Federal Reserve rate cuts.
Market Movers:
- Nvidia (NVDA) +2.9% — Nvidia rebounded sharply and hit another intraday record high after investors aggressively bought the dip following Tuesday’s semiconductor sell-off. Continued enthusiasm surrounding AI infrastructure spending and data center demand kept the chip giant at the center of Wall Street’s momentum trade.
- Wolfspeed (WOLF) +21% — Wolfspeed shares soared after Citrini Research identified the company as a major long-term beneficiary of the AI infrastructure boom. Investors also appeared increasingly optimistic about the chipmaker’s restructuring efforts and the strategic value of its silicon carbide manufacturing assets.
- Nextracker (NXT) +16% — Nextracker surged after posting stronger-than-expected quarterly earnings and raising its FY2027 revenue outlook. The company highlighted growing demand tied to power infrastructure expansion and renewable energy projects, helping boost investor confidence.
- Nebius Group (NBIS) +15% — Nebius rallied after reporting explosive revenue growth fueled by accelerating enterprise AI demand. Investors cheered the company’s plans to expand AI cloud infrastructure capacity through a massive new Pennsylvania-based AI factory project.
- Marvell Technology (MRVL) +9% — Marvell advanced after AMD disclosed a stake in the semiconductor company through a recent regulatory filing. The investment fueled speculation that AI-related partnerships and strategic semiconductor investments could continue expanding across the industry.
- Alibaba (BABA) +4% — Alibaba shares climbed after investors focused on accelerating AI and cloud-computing growth despite pressure on profitability. The company said AI products now account for a growing share of cloud revenue growth as commercialization efforts scale globally.
- Wix.com (WIX) -31% — Wix shares plunged after disappointing quarterly results and weaker-than-expected execution weighed heavily on sentiment. Investors were particularly concerned about productivity disruptions tied to the Middle East conflict and slower momentum in key business segments.
- Ring Energy (REI) -22% — Ring Energy tumbled after announcing a sizable public stock offering aimed at reducing debt. The financing raised investor concerns about shareholder dilution amid an already difficult environment for smaller energy producers.
- Red Cat Holdings (RCAT) -17% — Red Cat slid after pricing a major equity offering that sparked dilution concerns among investors. While management said proceeds would fund acquisitions and growth initiatives, traders reacted cautiously to the large capital raise.
Hot Inflation Data Pushes Bond Yields Higher
Markets digested another worrying inflation report after producer prices rose much more than expected in April. Headline wholesale inflation climbed 6% year over year, well above economists' forecasts and following Tuesday’s hotter-than-expected CPI report.
The data reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer, with traders increasingly questioning whether any rate cuts will materialize in 2026. Treasury yields climbed following the report, with the benchmark 10-year yield approaching the key 4.5% level. Rising yields have become an increasingly important risk for equities, particularly for high-growth technology stocks that are more sensitive to borrowing costs and valuation pressures.
Commodities Surge as Global Supply Pressures Build
Outside of equities, commodities continued their powerful rally as geopolitical tensions and supply disruptions fueled inflation concerns across the global economy. Copper prices remained near record highs amid booming AI infrastructure demand and tightening global supplies, while silver extended its massive rally tied to electric vehicle production and semiconductor manufacturing. Agricultural commodities also moved higher as the ongoing Strait of Hormuz disruption constrained fertilizer and shipping markets. Analysts warned that rising prices across industrial metals, agriculture, and energy could create broader inflationary pressure throughout manufacturing, transportation, and consumer goods sectors in the months ahead.
Trump’s China Trip Keeps Markets on Edge
Investors also monitored developments from President Trump’s trip to China, where trade policy, artificial intelligence, and geopolitical tensions are expected to dominate discussions with Chinese President Xi Jinping. Several major U.S. tech executives, including leaders from Apple, Nvidia, and Tesla, joined the delegation, underscoring the growing importance of AI and semiconductor competition between the world’s two largest economies. At the same time, uncertainty surrounding Iran and the Strait of Hormuz continued to linger in the background, keeping energy markets volatile and adding another layer of caution for investors already grappling with inflation concerns.
Looking Ahead
Wall Street now faces a complicated balancing act between resilient AI-driven growth and mounting inflation pressures that threaten to keep monetary policy restrictive. Investors will continue watching bond yields, commodity prices, and geopolitical developments closely as markets search for clarity on the Federal Reserve’s next move. While AI and semiconductor stocks remain powerful leadership groups, the sustainability of the broader rally may increasingly depend on whether inflation begins to cool in the months ahead.