Stocks shrugged off higher-than-expected producer inflation, with tech-heavy indices reaching new peaks while the Dow declined.
The S&P 500 and NASDAQ closed at record highs despite a hotter-than-expected producer price index report, which failed to dampen investor sentiment. The 10-year Treasury yield held below 4.5% at 4.470%, while the 30-year yield remained above 5% at 5.04%.
The NASDAQ ended at 26,402.34, surpassing its May 11 high of 26,274.13, while the S&P 500 closed at 7,444.24, up 0.58% for the day. The Dow Jones Industrial Average, however, fell 0.14% to 49,697.96, staying below its May 10 peak of 50,188.14. The Russell 2000 remained nearly flat, rising just 0.04%.
The divergence reflected sector-specific strength, with tech leading gains while high-priced Dow components lagged. Treasury yields showed limited reaction to the PPI data, suggesting markets may be pricing in a more resilient economic outlook.