The S&P 500 index rebounded and hit a record high on Wednesday, with bargain hunters snapping up technology stocks following a recent pullback, undeterred by persistent cost pressures. The S&P 500 rose 0.6% in New York, while the Nasdaq 100 index gained 1%. Chipmakers, along with optical and memory companies, led the advance as global supply for memory chips tightened further. NVIDIA (NVDA) shares climbed 2.3%. The acceleration of U.S. producer price inflation in April to its fastest pace since 2022, driven by war-related energy price increases that lifted transportation costs, presented a headwind. Investors weighed the potential disruptions from resurgent inflation, while strong corporate earnings and the profit outlook tied to artificial intelligence continued to bolster confidence in the economy and equity markets. The U.S. Senate voted to confirm Kevin Warsh's nomination as Federal Reserve Chair, paving the way for one of the most contentious leadership transitions at the U.S. central bank in decades. Optimism that industrial companies stand to benefit from the AI boom fueled record momentum for the sector. Anthropic PBC is reportedly in preliminary talks with investors to raise at least $300 billion in a new funding round. SoftBank Group reported a significant surge in quarterly profit, driven by valuation gains from its stake in OpenAI. Ford Motor's stock jumped after Morgan Stanley expressed confidence that its energy storage business could soon secure deals with hyperscale cloud service providers. At the close, the S&P 500 was up 0.6% at 7,444.25. The Dow Jones Industrial Average declined 0.1% to 49,693.2. The Nasdaq Composite Index rose 1.2% to 26,402.34. The Nasdaq 100 Index gained 1% to 29,366.94. The Russell 2000 Index was largely unchanged at 2,843.932.