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Wall Street Mixed as Inflation, Oil Prices Weigh on Markets
(MENAFN) US financial markets finished Tuesday with mixed results as investors reacted to stronger-than-expected inflation figures and a sharp rise in oil prices linked to renewed tensions surrounding the conflict between the United States and Iran.
The S&P 500 edged down by 0.16%, losing 11.88 points to close at 7,400.96 after recently reaching a record level. The Nasdaq also moved lower, dropping 0.71%, or 185.92 points, to finish at 26,088.20 as momentum in semiconductor stocks weakened.
Meanwhile, the Dow Jones Industrial Average posted modest gains, climbing 56.09 points, or 0.11%, to close at 49,760.56.
Market volatility eased slightly, with the VIX index — commonly known as Wall Street’s “fear index” — declining 2.12% to 17.99.
Fresh inflation data released by the Bureau of Labor Statistics showed consumer prices increased 0.6% in April, pushing annual inflation to 3.8%. While the monthly figure aligned with expectations, the yearly rate came in above analysts’ forecasts of 3.7% and marked the highest level recorded since May 2023.
Investor concerns over inflation intensified further as oil prices surged. West Texas Intermediate crude rose 4.19% to settle at $102.18 a barrel, while Brent crude advanced 3% to trade above $107.
The jump in energy prices followed remarks by President Donald Trump after he rejected Iran’s latest proposal aimed at ending the war. Trump described the month-old ceasefire between Washington and Tehran as “unbelievably weak” and “on massive life support.”
According to reports, Tehran’s proposal included demands involving compensation for war damages, complete control over the Strait of Hormuz, the release of frozen Iranian funds, and the removal of economic sanctions.
With oil prices remaining high, investors are continuing to monitor how the conflict could affect inflation levels and consumer spending, which represents a major portion of the US economy.
Technology stocks also faced selling pressure after recent strong rallies. Shares of Micron Technology dropped more than 4% after the company had surged over 37% during the previous week and played a major role in pushing the S&P 500 and Nasdaq to record highs on Monday.
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