Mücahithan Avcıoğlu
13 May 2026•Update: 13 May 2026
US stocks closed mostly lower Tuesday as investors assessed hotter-than-expected annual inflation data and rising oil prices amid renewed concerns about the US-Iran war.
The S&P 500 slipped 0.16%, or 11.88 points to 7,400.96, retreating from a record high, while the tech-heavy Nasdaq lost 0.71%, or 185.92 points to 26,088.20, as the recent rally in chip stocks cooled.
On the other hand, the Dow rose 0.11%, or 56.09 points to end at 49,760.56.
The Volatility Index (VIX), often referred to as the market’s “fear index,” fell 2.12% to 17.99.
The consumer price index rose 0.6% in April, bringing annual inflation to 3.8%, according to the Bureau of Labor Statistics. While the monthly increase matched market expectations, the annual reading exceeded economists’ forecast of 3.7% and marked the highest since May 2023.
Inflation concerns were reinforced by another sharp rise in oil prices. West Texas Intermediate crude jumped 4.19% to settle at $102.18 per barrel, while Brent crude climbed 3% to above $107.
The gains in energy prices came after President Donald Trump rejected Iran’s latest counterproposal to end the war and described the month-old ceasefire between Washington and Tehran as “unbelievably weak” and “on massive life support.”
Iran’s offer reportedly included demands for war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets and the lifting of economic sanctions.
With energy costs remaining elevated, investors are closely watching the effect of the war on inflation and consumer spending, which accounts for two-thirds of the US economy.
Technology shares came under pressure after strong recent gains. Micron Technology, which helped lead the S&P 500 and Nasdaq to record highs Monday, fell more than 4% after surging more than 37% last week.
Advanced Micro Devices and Qualcomm also declined, losing 3% and 11%, respectively. AMD had gained more than 74% in the last month, while Qualcomm rose more than 39% during the same period.
Separately, the US Senate confirmed Kevin Warsh on Tuesday to serve as a member of the Federal Reserve Board of Governors, moving President Donald Trump’s nominee a step closer to becoming the next head of the US central bank. The Senate voted 51-45 to confirm Warsh to a 14-year term.
On the data side, the US federal government posted a budget surplus of $215 billion in April, down 17% year-on-year.
The household debt in the US rose slightly in the first quarter of 2026, reaching $18.8 trillion as mortgage and auto loan balances increased.
European markets also fall
European stocks also saw negative figures, with the pan-European Stoxx Europe 600 index falling 1.01% to close at 606.63
Germany’s DAX 40 posted the sharpest decline, dropping 1.62% to 23,954.93. Spain’s IBEX 35 fell 1.56% to 17,573.60, while Italy’s FTSE MIB lost 1.36% to 48,990.98.
France’s CAC 40 declined 0.95% to 7,979.92, while the UK’s FTSE 100 slipped 0.04% to 10,265.32.
