S&P 500, Nasdaq end lower as inflation, Iran tensions weigh

S&P 500, Nasdaq end lower as inflation, Iran tensions weigh

By Stephen Culp and Ragini Mathur

Tue May 12, 2026

All indexes way down in the morning, the Dow opening down 400, the Nasdaq down over 500 by 1 pm before everyone started a rebound to recoup most of the losses, the Dow even getting a little into the black.  The sell off was due to the combo triggers of the CPI report coming in worse than even the skeptics had forecast, CPI being out of joint because of disruption to crude supply, and continuing and increasing skepticism about the war with investors digging in for the likelihood of a prolonged conflict.  

This has dashed hopes that inflation will come under control anytime soon with today’s expert summing things up, “Inflation is not getting any better unless oil prices go down. That’s the history that you can set your watch by.” To compound things, “Our call has been for the market to flatten out simply because greed occurs during earnings season and fear after.” Hopes for another rate cut have also been dashed and in fact replaced by rising odds of a rate increase come December.  Volume at 19.63 billion again came in above the 18.08 average. 

DJ: 49,704.47  +95.31          NAS: 26,274.13  +27.05         S&P: 7,412.84  3.91             5/11

DJ: 49,760.56  +56.09          NAS: 26,088.20  -185.92        S&P: 7,400.96  -11.88           5/12

Tue 5-12-26 S&P 500, Nasdaq end lower as inflation, Iran tensions weigh | Reuters