US markets opened without clear direction after new data showed wholesale inflation rebounded more sharply than expected, adding to uncertainty around the outlook for interest rates.
The Dow Jones Industrial Average climbed 0.7pc to 46,766.89, while the S&P 500 edged 0.1pc higher to 6,713.21, as investors weighed inflation pressures against growth optimism.
September’s producer price index, which tracks wholesale inflation, rose 2.7pc, slightly above the 2.6pc forecast, suggesting price pressures remain sticky beneath the surface.
Tech stocks told a different story. The Nasdaq Composite slipped 0.3pc to 22,795.88, dragged lower by a sharp 5.2pc plunge in Nvidia. The world’s most valuable chipmaker came under pressure after reports suggested Meta is in talks to invest in AI chips produced by Alphabet, raising concerns Nvidia could face increased competition in the high-performance AI market.
Alphabet’s shares jumped 2.5pc on the news, signalling growing investor confidence in Google’s expanding AI hardware ambitions.
The mixed session reflects a market caught between inflation worries and shifting dynamics in the AI arms race — a balance that continues to drive sharp stock-by-stock moves.
