US Stocks Fall from Records
2026-05-12 13:38
By
Andre Joaquim
1 min. read
US equities fell from record highs on Tuesday after a hot April CPI report consolidated worries that higher energy prices may dent earnings prospectives.
The Nasdaq dropped more than 1%, while the S&P 500 and Dow were around 0.5% lower.
The headline inflation rate rose more than expected to a three-year high of 3.8%, backing bets that the Fed will not cut rates this year amid the risk of an inflationary shock against recent evidence of a robust labor market.
AI hyperscalers and major chip producers were both lower to halt their surge this month, with Tesla, Nvidia, Amazon, and Alphabet down more than 1%.
Chip and memory producers were also lower as South Korea mulled establishing a universal dividend for the recent surges in AI infrastructure stocks, pressuring Broadcom and AMD to fall 2%.
Meanwhile, telehealth company Hims & Hers plunged 15% after its first-quarter earnings report missed their expectations.