NEW YORK — U.S. stocks moved higher after a cooler inflation reading reduced the immediate case for further Federal Reserve rate hikes, though gains were concentrated in AI-linked hardware rather than tech broadly.
The S&P 500 rose 0.2 percent and the Nasdaq Composite gained 0.4 percent. The Dow Jones Industrial Average was flat.
Nvidia climbed 2.5 percent to close at $222.93, the session's standout mover among large-cap technology names and a direct beneficiary of sustained capital spending on AI infrastructure.
The rally did not extend across the sector. Apple dropped 1.3 percent, Meta Platforms fell 2.7 percent and Microsoft declined 2.1 percent. Tesla lost 2.5 percent, Amazon fell 1.4 percent and Alphabet slipped 0.4 percent.
The divergence underscores a market sorting winners by exposure to AI chip demand rather than technology sector membership. Investors continue to watch inflation data for signals on the Fed's rate path.
