Nasdaq 100 Hits Record as Nvidia Soars, But Hot PPI Data Has Rate Hike Fears Simmering
MarketDash
Tech stocks shrugged off a scorching April PPI report on Wednesday, with the Nasdaq 100 hitting a fresh record as Nvidia extended its winning streak and Ford surged on a strong quarter. But the hot inflation data has traders pricing in a rate hike by year-end, and the Dow lagged as banks and utilities got hammered.
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Tech stocks ripped higher on Wednesday despite a sharply hotter-than-expected April Producer Price Index reading that rekindled inflation anxieties and rate-hike fears, as strength in semiconductors fueled investor sentiment.
Nvidia Corp. (NVDA) rallied for the sixth straight session to above $226 per share, with the company's market cap soaring above $5.5 trillion ahead of next week's highly awaited earnings report.
Speaking via Truth Social shortly before landing in Beijing, Trump told followers the trip – joined by Tesla Inc. (TSLA) CEO Elon Musk, Apple Inc. (AAPL) CEO Tim Cook and a last-minute addition of Nvidia CEO Jensen Huang – was aimed at "fixing the broken deal" with China while also pressing Xi to help "end the Iran problem."
On the macro front, April wholesale prices jumped 1.4% month-over-month, nearly triple the 0.5% consensus, and headline PPI surged to 6% year-over-year against expectations of 4.8%, the hottest print in over three years. Core PPI rose 1.0% versus 0.4% estimates, underscoring that Iran-war-driven energy inflation is now bleeding into broader pipeline pricing. Rate traders quickly revised Fed policy path, with fed funds futures now pricing a hike more likely than a hold by year end.
Across U.S. equity markets by midday Wednesday, the tape was a classic split – large-cap growth higher, rate-sensitive cyclicals and small caps lower. The S&P 500 rose 0.5% to 7,437.67 while the Dow Jones Industrial Average slipped 0.4% to 49,571, dragged by 189 points of weakness in its bank and industrial components. The Nasdaq 100 outperformed with a 0.7% gain to 29,265.56, leaning on a strong semis and clean-energy bid alongside Nvidia's continued march. The Russell 2000 slipped 0.1% to 2,839.74.
Among notable corporate movers, Ford Motor Co. (F) surged 11.9% to $13.42 after the automaker delivered Q1 revenue of $43.3 billion and adjusted EPS of $0.66, both ahead of consensus, while raising 2026 adjusted EBIT guidance to $8.5-10.5 billion. Management also unveiled "Ford Energy," a new battery and grid-storage subsidiary slated for $1.5 billion in capex, alongside a Universal EV platform targeting a $30,000 midsize pickup for next year.
Lucid Group Inc. (LCID) added 9.1% to $6.55 on no confirmed single-name catalyst, with the move best explained as EV-cohort sympathy buying off the Ford print.
On the downside, the software complex took the morning's biggest hit. Dynatrace Inc. (DT) collapsed 14.1% to $33.67 following its pre-market earnings print, with investors punishing what was widely read as a soft outlook against the $0.16 consensus EPS bar. Doximity Inc. (DOCS) sank 9.8% to $23.85 after its Q4 fiscal-2026 release missed the $0.18 EPS bar.
