PiCK
[New York Stocks Briefing] Nasdaq Drops 0.7% as Hot CPI Shakes Wall Street
Summary
- US April CPI rose 3.8%% from a year earlier, topping expectations and deepening inflation concerns.
- Rising prices led to a 0.3%% drop in real wages, while yields on two-year and 10-year US Treasuries rose, rattling the bond market.
- As international oil prices climbed, the Philadelphia Semiconductor Index fell 3.01%%, with chip stocks including Qualcomm and Intel tumbling.
Forecast Trend Report by Period
US April CPI rises 3.8%, highest since May 2023
Major New York stock indexes ended mixed on May 12 as inflation concerns intensified in the US. International oil prices also rose as tensions between the US and Iran escalated.
The Dow Jones Industrial Average rose 56.09 points, or 0.11%, to close at 49,760.56 on the New York Stock Exchange. The S&P 500 fell 11.88 points, or 0.16%, to 70,400.96, while the Nasdaq Composite dropped 185.93 points, or 0.71%, to 26,088.20.
US Labor Department data showed the consumer price index rose 3.8% in April from a year earlier. That was slightly above market expectations of 3.7% and marked the highest reading since May 2023. The data fueled analysis that the shock from the US-Iran war was beginning to feed into consumer prices.
On a monthly basis, CPI rose 0.6%, matching the increase in March. Core CPI, which excludes food and energy, rose 0.4% from the previous month and 2.8% from a year earlier. Market expectations were 0.3% and 2.7%, respectively.
Investors were rattled as inflation outpaced wage growth. Separate data released the same day showed US real hourly wages, adjusted for inflation, fell 0.3% from a year earlier. It was the first decline in real wages in three years.
The bond market also came under pressure as inflation concerns mounted. The two-year US Treasury yield rose 4.7 basis points from the previous session, approaching 4%, the highest level since June 2025. The 10-year Treasury yield also climbed 5.1 basis points to 4.463%.
International oil prices advanced after prospects for a ceasefire agreement between the US and Iran became more uncertain. President Donald Trump had earlier said the ceasefire with Iran was "on life support." He also attacked Iran's proposal to end the war, calling it a "stupid proposal."
Brent crude for July delivery rose 3.42% to settle at $107.77 a barrel. US West Texas Intermediate crude for June delivery gained 4.19% to close at $102.18 a barrel.
Semiconductor stocks, which had led the recent rally, posted steep losses. The Philadelphia Semiconductor Index fell 3.01%. Qualcomm sank 11.46%, Intel dropped 6.82%, Micron Technology lost 3.61%, AMD fell 2.29%, and Broadcom declined 2.13%.
Lee Su, Hankyung.com reporter, 2su@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
