LONDON, June 19 Reuters Global stocks hit record highs on Wednesday, driven by a rally in tech shares that has made AI chipmaker Nvidia the world39;s most valuable company, while the dollar stalled as soft U.S. retail sales data suggested rates could fall this year.

MSCI39;s AllWorld index was up 0.2 at 805.13, having traded at an alltime high of 805.43.

A burst higher in U.S. tech stocks on Tuesday allowed Nvidia to dethrone Microsoft, which boosted shares in chipmakers in Asia overnight.

U.S. stock index futures also rose, with those on the techheavy Nasdaq 100 up 0.2 and those on the SP 500 up 0.1. In Europe, the STOXX 600 eased 0.1.

The pound rose after data earlier showed British inflation returned to the Bank of England39;s 2 target in May for the first time since 2021.

The fall in inflation will be welcomed by both Prime Minister Rishi Sunak and the BoE but likely has come too late either to turn around Sunak39;s fortunes at next month39;s election or to prompt a rate cut from the central bank on Thursday.

With UK inflation at 2 and inflation in the U.S. if you take PCE at 2.7, this is hardly disruptive, Lombard Odier economist Samy Chaar said, referring to the Federal Reserve39;s preferred inflation measure the Personal Consumption Expenditures index.

It gives credibility to the idea that the Bank of England act in August at the latest and then that should be followed by the Fed in September, he said.

Sterling , which is down around 0.2 so far this…