US Inflation Highest Since 2023, Wall Street Weakens as Oil Prices

Illustration photo from Anadolu Agency

JAKARTA - The United States stock market mostly weakened on Tuesday after annual inflation in April rose to the highest level since May 2023. The pressure is getting heavier as oil prices soar amid fears of a US-Iran war.

Quoted from the Anadolu Agency report, Wednesday, May 13, the S&P 500 index fell 0.16 percent to 7,400.96. Nasdaq weakened 0.71 percent to 26,088.20 after the chip stock rally eased. The Dow Jones is still up a slight 0.11 percent to 49,760.56.

The U.S. consumer price index rose 0.6 percent in April. On an annual basis, inflation reached 3.8 percent. The figure was higher than economists' estimates of 3.7 percent.

The rise in inflation has made the market recalculate. Expensive energy costs could put pressure on consumer spending, even though household consumption accounts for about two-thirds of the US economy.

Oil prices also fueled concerns. West Texas Intermediate, or WTI, the benchmark for US crude oil prices, jumped 4.19 percent to 102.18 US dollars per barrel. Brent, the benchmark for international crude oil prices, rose 3 percent to above 107 US dollars.

The rise in energy prices came after US President Donald Trump rejected Iran's latest counterproposal to end the war. Still referring to Anadolu's report, Trump also called the Washington-Tehran ceasefire that has been running for a month "very weak" and "on a massive life support."

Iran's proposal reportedly includes demands for war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets, and the lifting of economic sanctions.

Technology stocks also fell. Micron Technology fell more than 4 percent after jumping more than 37 percent last week. Advanced Micro Devices fell 3 percent, while Qualcomm fell 11 percent.

Outside the stock market, the US Senate confirmed Kevin Warsh as a member of the Federal Reserve Board of Governors for a 14-year term. He is President Donald Trump's nominee and is said to be one step closer to becoming the next head of the US central bank.

Other data showed the US federal government recorded a budget surplus of 215 billion US dollars in April, down 17 percent compared to the same period last year. US household debt also rose slightly in the first quarter of 2026 to 18.8 trillion US dollars.

The pressure is not only in the US. European exchanges are also weakening. The Stoxx Europe 600 fell 1.01 percent to 606.63. The German DAX 40 fell 1.62 percent, the Spanish IBEX 35 fell 1.56 percent, and the Italian FTSE MIB weakened 1.36 percent.