The S&P 500 slipped on Tuesday, weighed down by losses in technology stocks and higher oil prices, as traders reacted to a hotter-than-expected annual consumer price index reading for April.
The Dow Jones Industrials index recovered 56.33 points to greet Tuesday’s closing bell at 49,760.80.
The much broader index sank 11.78 points to 7,401.05.
The NASDAQ waned 185.92 points to 26,088.20
Micron Technology — which led the S&P 500 and NASDAQA Composite to record highs on Monday — reversed course, falling more than 4%. The stock soared more than 37% last week and around 53% last month amid a memory chip rally.
Advanced Micro Devices fell 3% and Qualcomm floundered 11%. In the past month, AMD surged more than 74%, while Qualcomm gained more than 39%.
West Texas Intermediate futures jumped 3% to trade above $101 per barrel. Brent crude climbed 3% to above $108.
Those gains built on Monday’s advance, after President Donald Trump called the month-old ceasefire between the U.S. and Iran “unbelievably weak” and said it was “on massive life support” after rejecting an “unacceptable” counterproposal from Tehran to end the war.
In its latest counteroffer, Iran has insisted on war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets and lifted sanctions.
With energy prices remaining elevated, even more attention will be given to inflation data to assess the impact of the Iran war on the U.S. economy.
In April, the consumer price index rose 0.6%, putting the annual inflation rate at 3.8%, according to the Bureau of Labor Statistics. While monthly move for headline inflation was in line with expectations, economists polled by Dow Jones were calling for a gain of 3.7% from a year earlier. That annual inflation rate was the highest since May 2023.
Prices for the 10-year Treasury dipped, raising yields to 4.46% from Monday’s 4.41%. Treasury prices and yields move in opposite directions.
Oil prices hiked $4.24 to $102.31 U.S. a barrel.
Gold prices faltered $11.00 to $4,717.70 U.S. an ounce.
