US stocks: S&P 500 hits intraday record as tech stocks rally, crude oil prices fall

Major US equity indexes opened higher on Thursday as technology stocks drove broad market gains, with the S&P 500 reaching an intraday record. The rally reflects a confluence of factors that improved risk appetite: declining crude oil prices reduced inflation concerns, while softer producer price inflation data signaled moderating pricing pressures in the economy. These developments collectively reduced near-term macro headwinds.

The technology sector's outperformance—anchored by megacap names like AAPL, NVDA, and MSFT—suggests renewed investor appetite for growth assets. Lower oil prices typically benefit tech-heavy indices by reducing cost-of-capital assumptions and supporting valuations sensitive to discount rates. This dynamic is consistent with a risk-on rotation where inflation fears ease.

The softer PPI print is particularly significant for equity positioning, as it reduces stagflation concerns that have weighed on sentiment. Falling commodity prices, reflected in crude oil's decline, create a favorable backdrop for margin expansion in downstream sectors while simultaneously lowering refinancing costs for leveraged tech companies.

Sector implication: Energy experiences headwinds from lower oil prices, limiting upside participation despite broader market strength. Technology benefits disproportionately from the dual tailwind of easing inflation expectations and renewed growth sentiment, positioning the sector for continued relative strength in a risk-on environment.