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Nasdaq, S&P 500 Hit Fresh Highs as Tech Stocks Rise

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Nasdaq, S&P 500 Hit Fresh Highs as Tech Stocks Rise

The Nasdaq Composite and the S&P 500 reached fresh peaks on Wednesday, buoyed by a rally in technology stocks ahead of high-stakes talks between US President Donald Trump and his Chinese counterpart, Xi Jinping.

The Nasdaq rose 1.2% to 26,402.3 and the S&P 500 climbed 0.6% to 7,444.3. The Dow Jones Industrial Average slipped 0.1% to 49,693.2. Most sectors ended in the green, led by communication services, followed by tech, while utilities saw the steepest decline.

Chipmaking giant Nvidia's (NVDA) shares jumped 2.3%, among the best performers on the Dow. Apple (AAPL), Amazon.com (AMZN), and Cisco Systems (CSCO) also advanced. On Semiconductor (ON) shares surged 11%, the second-biggest gainer on the S&P 500.

Trump arrived in Beijing Wednesday, accompanied by Nvidia Chief Executive Jensen Huang, Apple's Tim Cook, and Tesla (TSLA) CEO Elon Musk, along with other executives. Trump is set to have talks with Xi on Thursday and Friday, CNBC reported.

"The trip underscores the stakes for chips, tech, and the (artificial intelligence) supply chain highlighted by Nvidia's most advanced chips, which (have) faced a series of tightening US export restrictions on China sales," Wedbush Securities said in note.

"We believe that this summit will prove 'constructive' as it keeps the conversation focused on reopening channels where possible rather than allowing the relationship to drift into a more permanent Cold War dynamic that would ultimately slow AI diffusion and cloud monetization on both sides," Wedbush said.

US Treasury yields were little changed in Wednesday late-afternoon trade, with the 10-year and two-year rates at 4.48% and 3.99%, respectively.

In economic news, US producer prices in April rose at the fastest pace in four years as broad-based increases in services and goods signaled intensifying inflation pressures, official data showed.

"On the heels of yesterday's disappointing (consumer price index) results, the April producer price report flags intense inflation pressure in the pipeline," BMO Capital Markets said in a note. "Look for another heated consumer inflation report in May, and not solely due to costlier gasoline, as price pressures stemming from the Iran war are bleeding into other sectors of the economy."

The central bank last month held rates steady for a third straight meeting and is widely expected to do so again in June, according to the CME FedWatch tool.

The US Senate confirmed Kevin Warsh's nomination as Fed chair on Wednesday. Warsh is Trump's pick for the job as the term of current central bank chief Jerome Powell is set to expire on Friday.

Boston Fed President Susan Collins expects the central bank to maintain its current monetary policy stance, which she described as "slightly restrictive."

"More than five years of above-target inflation has reduced my patience for 'looking through' another supply shock," Collins said in prepared remarks on Wednesday. "And while it is not

in my most likely outlook, I could envision a scenario in which some policy tightening is needed to ensure that inflation returns durably to 2% in a timely manner."

West Texas Intermediate crude was last down 0.9% at $101.27 a barrel, while Brent fell 1.8% to $105.85.

The International Energy Agency forecast a sharper decline in global oil demand this year than previously expected as the Middle East conflict drives up energy prices.

"More than 10 weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace," according to the report.

Separately, the Organization of the Petroleum Exporting Countries reduced its global oil demand growth outlook for 2026, but upgraded its projection for next year.

Trump recently rejected Iran's counteroffer to end the war, though a fragile ceasefire between the two countries still holds.

In company news, Wix.com (WIX) logged a larger-than-expected annual decline in its first-quarter earnings, while the Israeli web development platform maintained its full-year outlook. The company's US-listed shares tanked 27%.

Gold was last up 0.2% at $4,694.70 per troy ounce, while silver climbed 3% to $88.18 per ounce.

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Japan March Current Account Surplus Widens 29% in March on Strong Overseas Investment

Japan posted a current account surplus of 4.682 trillion yen in March, up 29% from 3.625 trillion yen a year earlier, as strong overseas investment income continued to offset a deficit in services trade, data from Japan's Ministry of Finance and the Bank of Japan showed on Wednesday.The goods and services balance recorded a surplus of 572.80 billion yen in March, up 0.2% from a surplus of 571.60 billion yen a year earlier. The goods account posted a 35.9% increase in surplus to 830.50 billion yen as exports rose 11.7% to 10.822 trillion yen from 9.691 trillion yen a year earlier, while imports increased 10% to 9.992 trillion yen from 9.079 trillion yen.The services balance remained in deficit at 257.80 billion yen, wider by 548% from the 39.80 billion yen deficit recorded a year earlier. Primary income, which reflects returns on overseas investments, rose to a surplus of 4.631 trillion yen in March from 3.833 trillion yen a year earlier. The increase was driven mainly by direct investment income and portfolio investment income.Secondary income posted a deficit of 522.00 billion yen, narrower than the 778.90 billion yen deficit recorded a year earlier. The capital account showed a deficit of 69.60 billion yen in March. The financial account recorded a balance of 4.308 trillion yen, while net errors and omissions stood at negative 304 billion yen.The data comes as private-sector members of Japan's key economic advisory panel urged the Bank of Japan to proceed cautiously with monetary policy normalization, warning that prolonged geopolitical tensions in the Middle East could strain funding conditions for smaller firms.The proposals, submitted to the Council on Economic and Fiscal Policy, called for close monitoring of inflation expectations and liquidity conditions even as the central bank signals the possibility of near-term rate hikes.The members noted that while no clear signs of funding stress have emerged among small and mid-sized firms, higher energy costs and supply disruptions could increase financing needs. Bank of Japan data showed commitment line contracts rose by 2.5 trillion yen in March, the largest monthly increase since the pandemic period, underscoring precautionary cash buildup among companies.The panel also stressed closer coordination between fiscal and monetary authorities and urged broader measures of fiscal assessment beyond the primary balance as Japan navigates inflation pressures, currency weakness and external risks.

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Nasdaq, S&P 500 Retreat From Record Highs Amid Losses in Tech Sector
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Nasdaq, S&P 500 Retreat From Record Highs Amid Losses in Tech Sector

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