finance
Wall Street Mixed as Oil Prices Rise on Middle East Tensions and Inflation Data Exceeds Forecasts
Major U.S. indexes fell from all-time highs on May 12, 2026, led by sharp declines in artificial-intelligence related stocks. Brent crude climbed to $108.05 per barrel after the war with Iran shut the Strait of Hormuz. A report showed U.S. inflation accelerated more than expected in April, pushing Treasury yields higher and increasing odds of a Federal Reserve rate hike.
May 12, 11:47 AM·2m read2 sources
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Wall Street retreated from record territory on May 12, 2026, as surging oil prices and a sell-off in artificial-intelligence stocks combined with worse-than-expected inflation data. 9% from its all-time high set the previous day. m.
6% from its own record high. Some of the heaviest losses hit companies tied to the artificial-intelligence boom. 8% even after it had more than tripled so far in 2026 prior to May 12.
1% after a 60% gain for 2026 prior to May 12. The pullback in AI stocks had begun earlier in Asia.
6% before its later decline. Rising oil prices added pressure across markets. 05 on May 12.
Brent crude was roughly $70 per barrel before the war with Iran, which has shut the Strait of Hormuz to oil tankers and kept them stuck in the Persian Gulf. U.S. inflation that worsened last month by more than economists expected, according to a report released on May 12.
Price increases accelerated by more in April 2026 than economists expected even after excluding gasoline and food costs. Traders responded by increasing bets on tighter policy.
They are betting on a better than 1-in-3 chance that the Federal Reserve could hike rates by December 2026, according to data from CME Group as of May 12. Higher rates tend to weigh on stock prices while slowing the broader economy. Individual company earnings produced sharply divergent reactions.
1% on May 12 after topping analysts’ expectations for earnings and giving a forecast for profit over the full year that topped analysts’ expectations. 4% after reporting a worse loss for the latest quarter than analysts expected.
