Nasdaq closes at record high; Google launches new AI model

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Wall Street up, awaits inflation data
U.S. markets advanced ahead of a crucial inflation report on Wednesday, despite April’s producer price index coming in hotter than expected. The Nasdaq rose to a record close, while the Dow Jones Industrial Average added 126 points. The S&P 500 gained almost 0.5% even as Federal Reserve Chair Jerome Powell said the central bank would need to be patience with its monetary policy given stubborn inflation. The yield on the 10-year Treasury slipped lower, and oil prices fell.  

Meme craze cools
Shares of GameStop and AMC rose on Tuesday, extending Monday’s gains after “Roaring Kitty” made a reappearance. Shares, however, gave up some of their earlier gains, suggesting enthusiasm for the so-called meme stocks was fading. AMC managed to raise $250 million in new capital in the midst of Monday’s meme stock rally. AMC ended Tuesday, up 32%, while GameStop soared 60%. 

Alibaba sinks
Profit at e-commerce giant Alibaba fell 86% to 3.3 billion yuan ($456 million) in its fiscal fourth quarter. The Hangzhou-headquartered company is facing rising competition at home and has been ramping up its overseas operations. Alibaba had a rocky 2023 as it restructured its business. The company’s shares fell 6% in New York. 

Biden’s China tariffs
The Biden administration sharply increased tariffs on $18 billion of Chinese imports, aimed at protecting U.S. industries and jobs. Tariffs on imported Chinese electric vehicles will rise to 100% from 25%. Other products that will be hit include medical needles, syringes and ship-to-shore cranes.  

Powell: Inflation falling slowly
Federal Reserve Chair Jerome Powell said inflation was not slowing as quickly as anticipated, requiring the central bank to maintain its current interest rates for longer. “We did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,” Powell said in Amsterdam. “What that has told us is that we’ll need to be patient and let restrictive policy do its work.” 

[PRO] Hot meme stocks
Meme stocks are back in vogue with the emergence of “Roaring Kitty.” This time, it extends beyond GameStop and AMC Entertainment. CNBC’s Yun Li takes a look at stocks causing a frenzy on Reddit forum “wallstreetbets.”The bottom line

Sam Altman’s OpenAI raised the bar for artificial intelligence assistants on Monday — a move that could spell the end of Siri and Alexa. In a demonstration, it effortlessly translated Italian to English on an Apple iPhone, and even solved a difficult math problem. 

The demo caught the attention of analysts,…