Traders work at the New York Stock Exchange on May 7, 2026.
NYSE
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 broad market index was 0.16% lower, closing at 7,400.96, and the Nasdaq Composite dropped 0.71% to 26,088.20. The Dow Jones Industrial Average advanced 56.09 points, or 0.11%, and ended at 49,760.56.
Micron Technology — which led the S&P 500 and Nasdaq Composite to record highs on Monday — reversed course, falling 3.6%. The stock soared more than 37% last week and around 53% last month amid a memory chip rally.
Advanced Micro Devices and Qualcomm also dropped 2% and 11%, respectively. In April, AMD surged more than 74%, while Qualcomm gained more than 39%.
Meanwhile, West Texas Intermediate futures jumped 4.19% to settle at $102.18 per barrel. Brent crude settled up 3.42% at $107.77. 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 “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 the lifting of economic sanctions.
With energy prices high, traders are giving close attention to the impact of the Iran war on inflation and consumer spending, which still accounts for about two thirds of the 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 the monthly increase in 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.
“It isn’t like it’s an avalanche, but it’s a steady move upward,” Thomas Martin, senior portfolio manager at Globalt Investments, said to CNBC, 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 U.S. and Iran.
“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,” he said.
— CNBC’s Anniek Bao and Jeff Cox contributed reporting.
