Traders work at the New York Stock Exchange on May 7, 2026.
NYSE
He S&P 500 fell on Tuesday, hurt by losses in technology stocks and higher oil prices, as traders reacted to a higher-than-expected April annual consumer price index reading.
The broad market index fell 0.16%, closing at 7,400.96, and the Nasdaq Composite fell 0.71% to 26,088.20. He Dow Jones Industrial Average It advanced 56.09 points, or 0.11%, and ended at 49,760.56.
Micron technology – which drove the S&P 500 and Nasdaq Composite to record highs on Monday – reversed course and fell 3.6%. Shares soared more than 37% last week and about 53% last month amid a rally in memory chips.
Advanced microdevices and Qualcomm They also fell 2% and 11%, respectively. In April, AMD rose more than 74%, while Qualcomm gained more than 39%.
Meanwhile, West Texas Intermediate Futures It jumped 4.19% to settle at $102.18 per barrel. raw brent It closed up 3.42% at $107.77. Those gains built on Monday’s advance, after President Donald Trump called the month-long ceasefire between the United States and Iran “incredibly 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 paying 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 rise in headline inflation was in line with expectations, economists surveyed by Dow Jones were predicting a 3.7% gain from a year earlier. That annual inflation rate was the highest since May 2023.
“It’s not like it’s an avalanche, but it’s a steady upward movement,” Thomas Martin, senior portfolio manager at Globalt Investments, told CNBC, adding that inflation will simply “continue to rise” the longer the conflict in the Middle East continues amid a lack of progress in negotiations between the United States and Iran.
“As gas prices and other prices get higher, this will affect more and more people, so the situation is that there will be continued struggles for the consumer,” he said.
— CNBC’s Anniek Bao and Jeff Cox contributed reporting.
