U.S. Stock Market Declines as Inflation Report Stokes Economic Fears
The S&P 500 and Nasdaq dropped after a hotter-than-expected inflation reading in April, driven by rising oil prices from the Iran war. Chip stocks fell sharply, with Qualcomm plummeting 13%, marking concerns about economic resilience.
Market Reaction
The S&P 500 slipped on Tuesday, weighed down by losses in technology stocks and higher oil prices, as traders reacted to a hotter-than-expected annual consumer price index reading for April, closing 0.16% lower at 7,400.96. The Nasdaq Composite dropped 0.71% to 26,088.20.
Tech Sector Turmoil
Chip stocks dropped on Tuesday, pulling back from a massive rally, with Qualcomm plummeting 13% and heading for its worst session since 2020. Intel dropped 8%, while On Semiconductor and Skyworks Solutions declined more than 6% each, and the iShares Semiconductor ETF tracking the sector sank 5%.
Inflation Drivers
Tuesday's declines followed a hotter-than-expected reading of a key consumer inflation measure as the war in Iran lifts oil prices. West Texas Intermediate futures jumped 4.19% to settle at $102.18 per barrel.