AI Stocks Surge as Inflation Eases, Fed Rate Hike Chances Decline

Stocks in New York finished just shy of an all-time high on Wednesday after several AI stocks reported better growth for the spring than analysts expected, and a report showed inflation across the United States was slightly less bad last month.

The S&P 500 rose 0.3% for its first gain since setting its all-time high on Friday, while the Dow Jones Industrial Average dipped 21 points, or less than 0.1%, and the Nasdaq composite climbed 0.5%.

Stocks in the artificial-intelligence technology business helped lead the way after strong profit reports bolstered hopes they can continue to deliver big-enough growth to justify the huge gains their prices have made.