S&P 500 Slips, CPI and Oil Spike Pressure Tech Stocks
The S&P 500 weakened on Tuesday (May 12th) as pressure hit technology stocks and oil prices rose sharply after higher-than-expected US inflation data for April. The Nasdaq also fell, while the Dow Jones Industrial Average remained in the green.
The S&P 500 fell 0.16% and the Nasdaq Composite fell 0.71%. The Dow Jones Industrial Average rose 56.09 points, or 0.11%, signaling a more defensive turnaround amid a combination of inflation and energy risks.
The biggest pressure came from chip stocks, which had previously led the rally. Micron reversed its decline by more than 4% after rallying sharply in recent weeks. AMD fell 3% and Qualcomm plunged 11%, deepening the decline in the technology segment.
In energy markets, WTI jumped 4.19% to close at US$102.18 per barrel, while Brent rose about 3% to above US$107. Oil prices continued to rise after Trump called the month-old US-Iran ceasefire "very weak" and "on massive life support" after rejecting Iran's counter-proposal to end the war.
Iran, in its counter-offer, reportedly demanded war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets, and the lifting of economic sanctions. With energy prices once again rising, market participants are focusing on the impact on inflation and consumer spending, which remains a major portion of economic activity.
Data-wise, the April CPI rose 0.6%, and annual inflation reached 3.8%, above the 3.7% forecast and the highest rate since May 2023. The market is now monitoring whether energy-related inflationary pressures will persist, as well as how developments in the US-Iran war and dynamics in the Strait of Hormuz will shape the direction of oil prices and risk sentiment. (arl)*
Source: Newsmaker.id
