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S&P 500 closed at 7,444.25, a fresh record, while Bitcoin and Ethereum fell 2‑3% on May 13. See why AI chips lifted equities despite hotter inflation.
The S&P 500 closed at 7,444.25, a new record high, gaining 0.58% as AI‑related chip stocks rebounded, while Bitcoin and Ethereum each fell roughly 3% on the same day【1】. The move came despite a producer‑price index (PPI) jump of 1.4%, the biggest monthly rise in four years, which has dampened hopes for an imminent Fed rate cut.
| At a glance | |
|---|---|
| S&P 500 close | 7,444.25 (+0.58%) |
| Nasdaq close | 26,402.34 (+1.20%) |
| PPI month‑on‑month | +1.4% (largest in 4 years) |
| Bitcoin price change | –≈3% (dragged equity gains) |
Six of the “Magnificent Seven” AI megacaps posted gains between 1.4% and 3.9%, leading the broader market higher after a Tuesday dip. Chip stocks, which had fallen the previous day, surged back, underpinning the S&P 500 and Nasdaq’s record closes. Market strategist Ryan Detrick noted that “technology remains resilient” amid the inflation backdrop【1】. Morgan Stanley’s annual S&P 500 target was lifted to 8,000 from 7,800, reflecting confidence that earnings strength can sustain further upside【1】.
The Labor Department’s PPI report showed a 1.4% rise, driven largely by crude‑supply disruptions after the Strait of Hormuz closure. Boston Fed President Susan Collins warned that a rate hike remains possible if inflation pressures persist【1】. The data reinforced concerns of a “longer pause” at the Fed, according to investment officer Jim Baird【1】. Despite the inflation surprise, equity markets ignored the news, focusing instead on the AI‑driven earnings momentum.
Cryptocurrency exchanges Coinbase and Strategy fell 2.8% and 3.5%, respectively, as Bitcoin and Ethereum weakness pulled them down【1】. The decline in digital assets contrasted sharply with the equity rally, highlighting the divergent reaction of risk‑on versus risk‑off assets to the same macro backdrop.
The record S&P 500 close shows that AI‑related equities can offset macro‑economic headwinds, but the persistence of high inflation and a volatile crypto market keep the broader outlook uncertain.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 16, 2026 · How we report
A stock exchange is a venue—physical or electronic—where trades are executed, while the stock market refers to the overall system of buyers, sellers, and listed securities.
A crash is commonly described as a decline of over 10% in a stock index over a few days, characterized by panic selling and often following a period of rapid price gains.
As of January 2022, the United States accounts for about 59.9% of global market cap, Japan about 6.2%, and the United Kingdom about 3.9%.
Participants range from individual retail investors to large institutions such as banks, insurance companies, pension funds, hedge funds, and corporate insiders.
Crashes often follow prolonged bull markets, excessive optimism, high price‑earnings ratios, and extensive use of margin debt, sometimes compounded by external events like wars or regulatory changes.