# S&P 500 hits record close as AI stocks rally, Bitcoin slips

**Published:** 2026-05-17T13:00:00.000Z  
**Topic:** Stock Market  
**Sentiment:** bullish  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/91f327c1-1b05-4c64-bdfe-4d81240bfdd6

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) |

## AI chips power the rally

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】.

## Inflation data stalls rate‑cut hopes

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.

## Crypto under pressure

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.

## What to watch
- **U.S. PPI and CPI releases** in the coming weeks for further clues on inflation trends.  
- **Federal Reserve policy meetings** (next scheduled on July 31) for any shift in the restrictive stance.  
- **Bitcoin price levels** around the $30,000 mark, which could signal renewed crypto momentum or further downside.

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.

## Sources
1. Virginia Business — [S&P 500, Nasdaq boosted by chips to record closing highs](https://virginiabusiness.com/sp-500-nasdaq-record-highs-chip-stocks-ai-tech/)
2. AOL — [S&P 500, Nasdaq boosted by chips to record closing highs](https://www.aol.com/articles/p-500-holds-near-record-101127000.html)

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Cite as: TrendWatcher, "S&P 500 hits record close as AI stocks rally, Bitcoin slips", https://www.trendwatcher.in/article/91f327c1-1b05-4c64-bdfe-4d81240bfdd6