S&P 500 Slips as Hot Inflation Data and Tech Selloff Weigh on Markets

CNBC reported Tuesday that the S&P 500 pulled back from record levels as a hotter-than-expected April inflation reading and a sharp retreat in semiconductor stocks rattled investor confidence.

The broad index lost roughly 0.6% on the session. The Nasdaq Composite dropped 1.4%, reversing much of the prior day’s gains.

Tech Leaders Give Back Monday’s Surge

Micron Technology, which helped power both the S&P 500 and Nasdaq to record closes just 24 hours earlier, shed more than 10% Tuesday. The stock had climbed over 37% last week alone, riding a broader memory chip wave higher. Advanced Micro Devices dropped around 6%, while Qualcomm fell approximately 14%. Both names had posted extraordinary runs in recent weeks, with AMD up more than 74% and Qualcomm gaining nearly 40% over the past month.

Also Read: What Is the Nasdaq Composite and Why Does It Matter?

April CPI Comes In Above Expectations

The S&P 500 inflation backdrop darkened further when the Bureau of Labor Statistics released April consumer price data showing a monthly gain of 0.6%. That pushed the annual rate to 3.8%, topping the 3.7% consensus forecast compiled by Dow Jones. It marked the highest year-over-year inflation reading since May 2023. Senior portfolio manager Thomas Martin of Globalt Investments told CNBC the move felt less like a sudden shock and more like a steady build. He cautioned that prolonged Middle East conflict would continue pressuring household budgets through higher energy costs.

Also Read: Iran-U.S. Ceasefire Talks Hit Fresh Impasse Over Reparations Demands

Oil Jumps as Iran Talks Stall

Crude prices added to Monday’s advance, with West Texas Intermediate futures climbing roughly 3% to trade above $101 per barrel. Brent crude crossed $107. The move came after President Donald Trump described the month-old ceasefire with Iran as being on “massive life support.” Tehran’s latest counterproposal reportedly includes demands for war reparations, control over the Strait of Hormuz, and full sanctions relief, terms Washington has called unacceptable. Energy costs feed directly into consumer spending, which still drives roughly two thirds of U.S. economic output.

Warsh Advances Toward Fed Chair Role

Away from the market action, the Senate voted 51-45 to confirm Kevin Warsh to the Federal Reserve’s Board of Governors. The vote fell mostly along party lines. Only one Democrat crossed over in support. Warsh, a former Fed governor who served from 2006 to 2011, is expected to face a separate confirmation vote Wednesday for the chair position itself.

Read Next: What a New Fed Chair Could Mean for Interest Rate Policy