<body><p>STORY: The S&P 500 and the Nasdaq gained ground on Wednesday with a boost from artificial intelligence-related tech shares.</p><p>The Dow actually fell slightly while the S&P gained about six-tenths of one percent and the Nasdaq added double that with the two indexes notching record closing highs.</p><p>The markets looked past data from the Labor Department showing producer prices jumped by 1.4% last month, the largest monthly increase in four years.</p><p>Tom Hainlin, national investment strategist with U.S. Bank Asset Management says he isn’t sure if these numbers will persist and what impact they will have on profits.</p><p>“Obviously, manufacturers and other importers are dealing with high prices due to tariffs and also due to high energy prices. I think the question is, this a temporary bump in producer prices or is it something that will ultimately eat into their profit margins? But we've seen strong investment in productivity tools . And we've seen profit margins remain pretty sturdy in here, which is driving corporate profits. But if this is a one-time blip, this can get managed through the corporate profit cycle.”</p><p>The recent inflation data is dousing any remaining hopes for a near-term rate cut from the Federal Reserve. </p><p>In fact, Boston Fed President Susan Collins said on Wednesday that a rate hike could be in the cards if inflation pressures fail to subside.</p><p>Kevin Warsh, President Donald Trump's nominee to succeed Fed Chair Jerome Powell, was confirmed by the Senate in a vote along party lines.</p><p>:: Ford</p><p>Stocks on the move included Ford which surged 13% following a Morgan Stanley report highlighting the strength of the company’s energy storage business. </p><p>And Johnson & Johnson climbed nearly 3% after brokerage Leerink Partners upgraded shares to "outperform" from "market perform."</p></body>
