S&P 500, Nasdaq and Dow Jones on May 12: The US stock market ended on Tuesday on a mixed note as investors weighed cooling tech momentum against rising energy prices and fresh inflation data.
US Stock Market Today: S&P 500, Nasdaq, and Dow Jones Close Mixed on May 12
The S&P 500 slipped 0.16% to close at 7,400.96, while the Nasdaq Composite dropped 0.71% to 26,088.20, and in contrast, the Dow Jones Industrial Average edged higher, gaining 56.09 points, or 0.11%, to finish at 49,760.56, as per a CNBC report.
Tech Stocks Today: Micron, AMD, and Qualcomm Lead Declines
Technology stocks, which had recently powered the rally, saw a pullback. Micron Technology fell 3.6% after surging sharply in the previous month and helping push major indexes to record highs on Monday. Advanced Micro Devices declined 2%, and Qualcomm dropped 11%, despite strong gains earlier in April.
Oil Prices Today: Crude Jumps on US–Iran Tensions
Energy markets added pressure to the broader sentiment. West Texas Intermediate crude rose 4.19% to $102.18 per barrel, while Brent crude climbed 3.42% to $107.77, as per the CNBC report. The increase extended Monday’s gains as geopolitical tensions between the US and Iran intensified following strong rhetoric and rejected proposals related to ending the conflict.
Investors are now closely watching how rising oil prices could influence inflation and consumer demand, which accounts for roughly two-thirds of the US economy.
Inflation Data: CPI Rises to Highest Level Since 2023 in April
April’s consumer price index rose 0.6%, bringing the annual inflation rate to 3.8%, according to the Bureau of Labor Statistics. That marked the highest yearly reading since May 2023, slightly above expectations of 3.7%.
Market Outlook: Inflation and Consumer Pressure in Focus
Thomas Martin, senior portfolio manager at Globalt Investments, explained that, “It isn’t like it’s an avalanche, but it’s a steady move upward,” Thomas Martin, senior portfolio manager at Globalt Investments, adding that inflation is just “going to keep on building” the longer the conflict in the Middle East continues amid a lack of progress in negotiations between the US and Iran, as quoted by CNBC.
He highlighted that, “As these gas prices and other prices are higher, it’s going to crimp more and more people, so the setup is for there to be continued struggles for the consumer,” as quoted in the report.
Greenlight Capital’s president, David Einhorn, said markets remain “very highly valued,” adding that stocks are “very, very pricey” on a historical basis, even though he acknowledged missing parts of the recent rebound.
FAQs
What happened to the S&P 500 today?It slipped 0.16% to close at 7,400.96.
Why did the Nasdaq fall?
It dropped 0.71%, weighed down by weakness in major technology stocks.
