Stock Market Today: S&P 500 shrugs off hot inflation data to clinch record close

investing.com:

Investing.com — The S&P 500 closed at a record high Tuesday as U.S. stocks took a hotter-than-expected inflation report in stride, underpinned by fresh bullish bets in tech.

At 16:00 ET (20:20 GMT), the benchmark S&P 500 climbed 1.1% to record of 5,173.97, the tech-heavy Nasdaq Composite gained 1.5%, and the blue-chip Dow Jones Industrial Average jumped 235 points, or 0.6%.  

The core gauge came in at 0.4%, which strips out volatile items like food and fuel, matching the prior month and marginally hotter than expectations of 0.3%, taking the year-on-year pace to 3.8% from 3.9%, but that was still slightly above projections of 3.7%.

The hotter-than-expected pace of inflation will be “one factor delaying the decision to start cutting rates to June this year,” Morgan Stanley said in a note.

Treasury yields moved higher on the prospect of higher for longer interest rate path, but that did little to stem bullish bets on tech, led by Oracle and a rebound in Nvidia.

Oracle Corporation (NYSE:ORCL) surged nearly 12% after reporting stronger-than-expected quarterly earnings on increased demand for its AI offerings. 

The cloud computing firm said it will make a joint announcement with AI darling Nvidia (NASDAQ:NVDA) this week, citing expectations of increased AI-led demand for cloud infrastructure.

NVIDIA Corporation (NASDAQ:NVDA) jumped more than 7%, lifting the broader chip sector more than 3% higher, while megacap tech including Alphabet Inc Class A (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) were also in the ascendency.

Industrials, however, lagged the broader market move higher, weighed down by slump in airline stocks and a more than 4% slump in Boeing Co (NYSE:BA) after the