Stocks Ease after Hot CPI and Oil Spike

U.S. stocks mostly pulled back Tuesday as a hotter-than-expected core inflation reading and another jump in oil prices cooled the recent rally, especially in high-flying semiconductor names. Treasury yields rose as investors delayed hopes for Fed easing, while crude climbed above $102 amid continuing Iran-related supply concerns. The Dow held slightly higher, but the S&P 500 slipped from record levels and the Nasdaq weakened as tech momentum faded.

Key Headlines & Market Movers:

• Core Inflation Keeps Fed Cautious: April CPI showed headline inflation accelerating on higher energy and food costs, while core inflation rose more than expected and reached its highest level since September. The report reinforced the view that rate cuts are off the table for now, though the data were not strong enough to make near-term rate hikes the base case. The 10-year Treasury yield moved higher to roughly 4.46%, adding pressure to growth stocks and other rate-sensitive areas.
• Oil Surge Complicates the Macro Picture: Crude prices extended Monday’s gains after President Trump rejected Iran’s response to a U.S. proposal to end the war, keeping geopolitical risk firmly in focus. West Texas Intermediate rose above $102 a barrel, raising concerns that energy costs could continue feeding into inflation in May. Strategists noted that higher gasoline prices are already weighing on consumers and could challenge optimistic earnings expectations if discretionary spending weakens.

Chipmakers Lead the Equity Pullback: Semiconductor stocks bore the brunt of the selloff after a sharp six-week rally left the group vulnerable to profit-taking. Intel, Micron, and Qualcomm sold off sharply, while Nvidia was a relative bright spot after touching another record high. Elsewhere, Under Armour, Hims & Hers, and GitLab fell on weak results, guidance, or restructuring news, while eBay rose after rejecting GameStop’s unsolicited takeover offer.

S&P 500 Sector Performance

Looking Ahead

Markets will turn next to the Beijing summit between President Trump and Chinese leader Xi Jinping, where trade discussions are expected to be a central focus, and to the Senate vote on Kevin Warsh’s nomination as the next Federal Reserve Chair. Investors will be watching whether geopolitical developments keep oil elevated, whether yields break above the recent range, and whether tech leadership can stabilize after Tuesday’s semiconductor-led pullback.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍