US Stocks End Mixed After Inflation Surprise; Nasdaq Falls 0.7%

US April CPI rises 3.8%, highest since May 2023

US stocks ended mixed on May 12 as stronger-than-expected inflation data rattled investors. Oil prices also climbed as tensions between the US and Iran intensified.

The Dow Jones Industrial Average rose 56.09 points, or 0.11%, to 49,760.56 at the close on the New York Stock Exchange. The S&P 500 fell 11.88 points, or 0.16%, to 70,400.96, while the tech-heavy Nasdaq Composite dropped 185.93 points, or 0.71%, to 26,088.20.

US consumer prices rose 3.8% in April from a year earlier, Labor Department data showed. The reading topped market expectations of 3.7% and marked the fastest increase since May 2023. Analysts said the impact of the US-Iran conflict was beginning to feed into consumer prices.

On a monthly basis, prices rose 0.6%, matching March's increase. Core CPI, which excludes food and energy, climbed 0.4% from the prior month and 2.8% from a year earlier. Economists had expected increases of 0.3% and 2.7%, respectively.

Investors were unsettled as inflation outpaced wage growth. Separate data released the same day showed real hourly wages in the US, adjusted for inflation, fell 0.3% from a year earlier. It was the first decline in real wages in three years.

Treasuries also came under pressure as inflation concerns mounted. The two-year Treasury yield rose 4.7 basis points, approaching 4%, the highest level since June 2025. The 10-year Treasury yield climbed 5.1 basis points to 4.463%.

Oil prices rose as prospects for a ceasefire agreement between the US and Iran grew more uncertain. Earlier, President Donald Trump said the ceasefire with Iran was "on life support." He also blasted Iran's proposal to end the war as a "stupid proposal."

Brent crude for July settlement rose 3.42% to settle at $107.77 a barrel. West Texas Intermediate crude for June delivery gained 4.19% to $102.18 a barrel.

Chip stocks, which had led the recent rally, posted sharp losses. The Philadelphia Semiconductor Index fell 3.01%. Qualcomm tumbled 11.46%, Intel dropped 6.82%, Micron Technology fell 3.61%, AMD lost 2.29% and Broadcom declined 2.13%.

Lee Su, Hankyung.com reporter, 2su@hankyung.com