Apple Jumps on Report of Plans for AI-Powered Macs

Major U.S. equities indexes were mixed as investors received some refreshing news on inflation, with the latest Producer Price Index (PPI) report revealing that wholesale prices rose less than expected in March.

The S&P 500 pushed 0.7% higher, while the Nasdaq jumped 1.7%, boosted by outperformance from the technology sector. After spending most of the afternoon in positive territory, the Dow was little changed.

Paramount Global (PARA) shares notched the top performance on the S&P 500, popping 7.3% higher amid reports of progress on a potential merger with Skydance Media with Skydance set to meet with Paramount management next week. The possible deal has sparked controversy and was criticized earlier this week by Paramount shareholder Matrix Asset Advisors. Four board members are expected to step down amid concerns about the merger.

In a day of strong gains for tech companies, shares of Broadcom (AVGO) jumped 4.5%. JPMorgan analysts reportedly said earlier in the week that Broadcom could benefit from artificial intelligence (AI), with growing investment in the data centers that underpin AI serving as a catalyst.

The wave of enthusiasm around AI helped lift other semiconductor stocks. Micron Technology (MU) shares added 4.3%. Shares of Nvidia (NVDA) climbed 4.1%, rebounding from a correction that saw the stock briefly dip 10% below its all-time closing high.

Apple (AAPL) shares added 4.3% following a report it plans to overhaul its Mac computers with updated versions of its in-house processors with AI features. Analysts also pointed to the tech giant’s potential to benefit from AI.

Shares of insurer Globe Life (GL) plummeted 53.1%, logging the steepest losses on the S&P 500 after short seller Fuzzy Panda disclosed that it had taken a short position in the stock. Fuzzy Panda said it had discovered multiple allegations of insurance fraud committed by Globe Life and its subsidiaries.

Carmax (KMX) shares plunged 9.2% after the used car retailer reported lower-than-expected fourth-quarter sales and profits. High rates on car loans and a limited supply of used vehicles weighed on the company’s performance.

Fastenal (FAST), which supplies screws and other fasteners for construction and manufacturing markets, also fell short of quarterly estimates, and its shares sank 6.5%. Sales of fasteners dropped 4.4% year over year. The company said bad weather and complexities involving the quarterly calendar had a negative impact on the results.