Dow, S&P 500 Climb To New Highs After Inflation Data—But Here’s Why Tech Stocks Are Still Falling

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Though the Dow and S&P have nabbed two consecutive closing highs, the tech-heavy Nasdaq sank again Wednesday.

Major stock indexes extended their record highs Wednesday after new economic data showed recently spiking inflation may finally be moderating, but although ongoing supply shortages aren't hiking up prices more quickly, they are still dealing a blow to chip-making stocks, which pushed the broader technology sector lower for a second-straight day alongside a plummeting vaccine-maker.Key Facts

After closing at record highs Tuesday, the Dow Jones Industrial Average climbed 220 points, or 0.6%, to 35,484 on Wednesday, while the S&P 500 ticked up 0.3% to 4,447 points; the indexes are now up about 17% and 20%, respectively, this year. 5.

Despite the bullish inflation reading, however, the tech-heavy Nasdaq sank for the second day in a row, falling 0.2% to 14,765, paring back its gain to just 16% this year. Heading up the losses in the index, vaccine-maker Moderna plunged more than 15% after Bank of America warned in a Tuesday note the company's valuation, of nearly $200 billion, was"ridiculous" in light of expectations that demand for Covid-19 vaccines will eventually wane and tank revenues from ane stimated $20 billion this year, to about $5.7 billion in 2023.

Meanwhile, chipmakers Applied Materials, Lam Research and Nvidia extended losses from Tuesday, falling as much as 2% Wednesday after market research firm TrendForce

 

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5 things to know before the stock market opens WednesdayFutures contracts tied to the Dow Jones Industrial Average and S&P 500 hovered around the flatline, as traders awaited the release of key inflation data.
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