Inflation Reignited, Oil Prices Hit Triple Digits, AI Rally Stalls in New York Stock Market

On the 12th (local time), New York stocks closed mixed as renewed inflation concerns and a sharp rise in oil prices weighed on sentiment. The Dow Jones Industrial Average ticked up 0.11% to 49,760.56, while the S&P 500 fell 0.16% to 7,400.96 and the Nasdaq Composite slid 0.71% to 26,088.20, retreating from recent record highs. Investors clearly shifted out of richly valued AI and semiconductor names into defensive sectors like energy.

The immediate trigger was April’s Consumer Price Index: headline CPI rose 0.6% month-over-month and 3.8% year-over-year, slightly above forecasts and marking the highest inflation reading since 2023. At the same time, West Texas Intermediate crude topped $102 per barrel and Brent crude exceeded $107, amplifying price pressures. Oil surged on worries about a prolonged U.S.-Iran conflict and potential Strait of Hormuz disruptions after former President Trump publicly rejected Iran’s ceasefire proposal.

The combined shock of higher inflation and oil prices has effectively dashed expectations for Federal Reserve rate cuts this year. With the Fed holding rates steady, the Senate also confirmed Kevin Warsh—considered relatively hawkish—to the Fed’s Board of Governors, adding uncertainty to future monetary policy. Major chipmakers including Micron, Intel, AMD and Qualcomm all gave back 3–10% of their recent gains, weighing on the Nasdaq, while health-tech firm Hims & Hers plunged more than 10% intraday after disappointing earnings. For investors, the day underscored three key risks: heightened volatility in AI and growth stocks, margin pressure from elevated oil costs, and fading hopes for Fed easing.