The article discusses the performance of Nvidia’s stock (NVDA) and the broader tech sector in the stock market, despite the release of inflation data that showed a higher-than-expected increase in the personal consumption expenditures (PCE) price index. Key points include: Nvidia’s stock surged over 8% on the day, leading gains in the tech sector. The PCE price index, a key inflation gauge closely watched by the Federal Reserve, rose 0.6% in April, higher than the 0.4% estimate. Despite this, tech stocks rallied, with the Nasdaq Composite gaining over 2%. Analysts suggest investors are betting that the Fed’s interest rate hikes will eventually cool inflation, and that the tech sector’s growth prospects remain strong. The rally in Nvidia’s stock was attributed to optimism around its artificial intelligence (AI) capabilities and the growing demand for AI chips. Overall, the article highlights the resilience of the tech sector, particularly Nvidia, in the face of persistent inflation concerns.