Stock Market Today: Nasdaq Higher as Nvidia Shares Jump, Bond Yields Rise

The rally came as fresh economic data showed U.S. economic growth and inflation remain hot, adding to fears of persistently tight Federal Reserve monetary policy.

Anxiety has crept into other areas of the market, particularly with the U.S. debt-ceiling deadline looming. Fitch late Wednesday placed the U.S.’s triple-A credit rating on negative watch, citing “increased political partisanship” around the debt limit.

In late-afternoon trading:

Stock indexes were split. The S&P 500 added 0.9%. The Dow slipped 0.1%. Only the Nasdaq is on track for weekly gains.

Yields on U.S. government bonds rose. The yield on the benchmark 10-year U.S. Treasury note settled at 3.814%, from 3.717% Wednesday, marking its largest one-day gain since May 1. The two-year yield rose to 4.508%, from 4.343%.

Stocks tied to the AI frenzy rallied. Chipmaker Advanced Micro Devices and the American depositary receipts for Taiwan Semiconductor Manufacturing Co. both jumped.

Oil retreated a day after Brent crude, the global benchmark, on Wednesday reached its highest settlement value since the start of May.

Data watch: First-quarter gross domestic product was revised upward to a 1.3% annual growth rate. Meanwhile, jobless claims increased slightly last week but remained at historic lows.