S&P 500 Hits Record High Despite Scorching PPI After CPI Shock

S&P 500 and Nasdaq closed at record highs, up 0.58% and 1.20% respectively, shrugging off a hotter-than-expected April PPI (headline +1.4% MoM vs 0.5% exp, YoY 6.0%; core +1.0% MoM). This resilience follows May 12's core CPI surprise (MoM +0.4% vs 0.3% exp, YoY 2.8% vs 2.7%), where markets stayed steady amid modest yield rises (2yr to 3.962%, 10yr to 4.422%) and mixed equity action (S&P down ~20, Nasdaq ~208 points intraday). PPI drove yields higher initially (2yr ~4.0%, 10yr ~4.47%), lifted 5-year inflation expectations to 2.7%, and priced 59% odds of an April Fed hike, yet equities powered through with dollar firming.