Forecast Trend Report by Period
US April CPI rises 3.8%, highest since May 2023
US stocks ended mixed on May 12 as inflation concerns intensified. 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 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. That topped market expectations of 3.7% and marked the fastest annual increase since May 2023. Analysts said the shock from the war between the US and Iran was beginning to feed into consumer prices.
On a monthly basis, the consumer price index rose 0.6%, matching March's gain. Core CPI, which excludes food and energy, rose 0.4% from a month earlier and 2.8% from a year earlier. The market had expected increases of 0.3% and 2.7%, respectively.
Investors were unsettled after 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.
The bond market also came under pressure as inflation worries deepened. The two-year Treasury yield rose 4.7 basis points from the previous session, nearing 4%, its highest level since June 2025. The 10-year Treasury yield also climbed 5.1 basis points to 4.463%.
International oil prices rose as prospects for a ceasefire agreement between the US and Iran grew more uncertain. President Donald Trump earlier said the truce with Iran was "on life support." He also attacked Iran's proposal to end the war as a "stupid proposal."
Brent crude futures for July delivery settled at $107.77 a barrel, up 3.42% from the previous session. US West Texas Intermediate crude futures for June delivery rose 4.19% to settle at $102.18 a barrel.
Semiconductor stocks, which had led the recent rally, posted steep losses. The Philadelphia Semiconductor Index fell 3.01%. Qualcomm tumbled 11.46%, Intel slid 6.82%, Micron Technology lost 3.61%, AMD fell 2.29% and Broadcom dropped 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.
