US stocks closed mostly in a positive course Wednesday as a technology-led rally pushed the S&P 500 and Nasdaq to another record high, while most stocks in the index ended lower amid renewed inflation concerns.

The S&P 500 rose 0.58%, or 43.29 points, to an all-time high of 7,444.25, supported by gains in chip and artificial intelligence-linked shares, and the tech-heavy Nasdaq Composite also advanced 1.2%, or 314.14 points, to a record high of 26,402.34.

On the negative side, the Dow Jones Industrial Average fell 0.14%, or 67.36 points, to 49,693.2.

The Volatility Index (VIX), often referred to as the market’s “fear index,” fell 0.67% to 17.87.

Technology shares outperformed the broader market as investor appetite for the artificial intelligence trade offset concerns over hotter-than-expected inflation and higher energy prices caused by the Iran war.

Nvidia shares rose 2.3%, while Micron Technology gained more than 4.8%. The VanEck Semiconductor ETF advanced about 2%.

Despite the S&P 500’s record close, roughly two-thirds of the index’s members ended the session lower, with losses seen in economically sensitive stocks, including retailer Home Depot and banking giant JPMorgan.

The rally in chip stocks came as Nvidia CEO Jensen Huang joined US President Donald Trump on his China trip to meet President Xi Jinping, raising expectations of possible progress on Nvidia’s access to Chinese markets.

Meanwhile, the US Senate on Wednesday confirmed Kevin Warsh as chair of the Federal Reserve for a four-year term, placing President Donald Trump’s nominee at the helm of the US central bank at a time of heightened scrutiny over interest rates and the Fed’s independence.

Inflation data remained a key pressure point for investors. The producer price index rose 1.4% in April, marking the largest monthly gain since March 2022 and exceeding market expectations of a 0.5% increase.

Producer inflation rose 6% year-on-year, the largest annual increase since December 2022 and above expectations of 4.9%.

European markets rise

European stocks, meanwhile, saw positive figures, with the pan-European Stoxx Europe 600 index rising 0.79% to close at 611.42 points.

Germany’s DAX 40 gained 0.76% to 24,136.81 points, while Italy’s FTSE MIB 30 climbed 1% to 49,480.7 points.

The UK’s FTSE 100 advanced 0.58% to 10,325.35, France’s CAC 40 added 0.35% to finish at 8,007.97, and Spain's IBEX 35 increased 0.46% to 17,654.90. (AA)