US Stock Market Live Updates: S&P 500 Drifts as Oil Slides, Tech Tries to Rebound With Earnings Ahead

Wall Street's record-setting run hit a wall today. Investors reacted to hotter than expected inflation data rising geopolitical tensions between the United States and Iran and renewed weakness in technology stocks interrupting the recent rally that had pushed the S&P 500 and Nasdaq to fresh record highs just a day earlier. 

April's Consumer Price Index rose 3.8% year over year topping the 3.7% consensus while oil climbed above $100 per barrel after CNN reported that President Trump was more seriously considering restarting combat operations in Iran. The combination proved toxic for equities. Chip stocks bore the worst of it with Qualcomm plummeting 13% for its worst session since 2020 while Intel dropped 8% and the iShares Semiconductor ETF sank 5%. With sticky inflation now reinforcing the case for the Federal Reserve to hold rates higher for longer the market mood shifted decisively from optimism to caution. Every data point that follows this week will matter.

The major averages are mixed at mid-day as traders work through a choppy session. The Dow is up 85 points, or 0.2%, while the S&P 500 is hovering near flat and the Nasdaq is down 0.3%. Volume is running slightly below average, with investors hesitant to make big bets before this afternoon’s Fed speakers and key earnings after the bell. The 10-year Treasury yield has eased to 4.36%, giving some support to rate-sensitive names.

Mega-cap tech is weighing on the Nasdaq heading into the afternoon. Apple and Microsoft are both down about 0.7% as traders take profits after last week’s AI-driven rally. Nvidia is holding near the flatline, pausing after an 8% gain over the prior five sessions. The broader tech sector, tracked by XLK, is down 0.5% mid-day, making it the second-worst performer in the S&P 500 so far.

One bright spot mid-day is the Russell 2000, which continues to outperform the broader market. The small-cap index is up 0.6% as investors rotate into more domestically focused and rate-sensitive names. Regional banks are helping lead the charge, with the KRE ETF up 0.9% as falling yields ease pressure on balance sheets.

Retail names are splitting the market after morning results. Home Depot is down 2.4% after cutting its full-year sales outlook, citing softer big-ticket spending. Walmart is up 1.5% thanks to a strong e-commerce quarter and steady grocery traffic. So far this season, 73% of S&P 500 companies have topped EPS estimates, but guidance remains cautious heading into the second half.

Overseas markets set a weak tone overnight. Japan’s Nikkei fell 1.4% and Hong Kong’s Hang Seng lost 0.9% after China reported slower industrial output growth. In Europe, the Stoxx 600 is flat mid-day as traders there await minutes from the ECB’s last meeting. The global backdrop remains cautious with trade and geopolitical tensions still in focus.

Real estate and utilities are leading the S&P 500 at mid-day, each up about 0.8%, benefiting from the pullback in yields. Consumer staples are also higher. On the downside, energy is the worst performer, followed by tech and communication services. Overall, seven of the eleven S&P sectors are in the green heading into the afternoon.

The CBOE Volatility Index is moving higher, up 6% to 16.4, as traders buy protection ahead of CPI data due later this week. Options activity is running about 18% above the 30-day average, with notable hedging in tech and semiconductor names. The move in VIX marks its highest level so far this month.

The S&P 500 is down 0.1% and struggling to hold the 5,200 level that traders are watching for support. Market breadth is slightly positive, with advancers narrowly outpacing decliners on the NYSE. After the bell, Cisco and Synopsys are set to report, which could set the tone for tech into tomorrow.

US stock futures are trading mixed as investors digested a hotter-than-expected wholesale inflation reading. Dow futures fell 0.5% while Nasdaq 100 futures climbed 0.6% after Tuesday's broad selloff. 

April producer prices rose 1.4% month over month far above the 0.5% economists had forecast. On a year-over-year basis headline wholesale inflation came in at 6% well above the 4.8% estimate signaling that energy-driven price pressures are spreading through the supply chain. 

The hot PPI reading coming a day after a hotter-than-expected CPI report reinforces bets that the Federal Reserve will hold interest rates steady at its next meeting with rate hike odds now rising among traders. 

Morgan Stanley raised its year-end S&P 500 target to 8,000 from 7,800 citing an unexpectedly strong earnings season. First quarter profits for S&P 500 companies have grown 27% far above the 12% analysts had expected with roughly 83% of reporting companies beating estimates. 

Nvidia CEO Jensen Huang joined Trump's trade delegation to China as a last-minute addition boarding Air Force One at a refueling stop in Anchorage. He joins Apple's Tim Cook Tesla's Elon Musk and other major CEOs for a summit with President Xi Jinping focused on trade and AI.

Alibaba reported a 3% increase in fourth quarter revenue missing analyst expectations as heavier spending on AI initiatives cloud infrastructure and rapid delivery weighed on earnings. Cloud revenue surged 38% year over year to $6.13 billion roughly in line with Wall Street estimates.

Silver and copper futures have been rallying together while gold drifts lower drawing a clear line between safe-haven demand and hard infrastructure demand. Data centers need power wiring cooling systems and grid upgrades making both metals key beneficiaries of the AI build-out beyond just chips.

The worsening global memory chip shortage is driving a growing divide in corporate results. Memory makers like Micron and Samsung are posting record gains while consumer device makers including HP and Nintendo face higher costs and weaker margins. Analysts warn the crunch could extend as far as 2030.

Oil steadied after rising nearly 8% over three sessions as the Iran conflict remains unresolved. No ocean-going tankers were observed at Iran's Kharg Island for several days the first sign of an extended halt at the country's main export hub since hostilities began.

US President Trump told reporters the Iran conflict would not feature heavily in his talks with Xi Jinping saying trade discussions would be prioritized and adding that the US has Iran "very much under control." The ceasefire remains shaky with military threats still on the table. 

Mistral AI is partnering with European banks on a cybersecurity AI rivaling Anthropic’s Mythos.

Anthropic limited Mythos access to a few US firms, sparking EU fears over dependency in critical sectors.

Mistral CEO Arthur Mensch told France’s National Assembly: “You can’t have the French military’s source code scanned by Mythos.”

Talks are underway for EU banks to test the model once ready, as Europe pushes for tech sovereignty.

Treasury yields jumped to 2026 highs after hotter wholesale inflation data Wednesday, followed by April CPI gains.

The 10-year yield climbed to 4.47%, near 4.5% and its highest since July 2024.

The 30-year yield held above the key 5% level, while the 5-year sat at 4.13%.

Bond prices fell as yields rose, with inflation fears pressuring rate-cut expectations.

Dow fell 282 points, -0.6%, as hot wholesale inflation hit rate-sensitive stocks.

NASDAQ gained 0.7% and S&P 500 rose 0.2%, lifted by semiconductor strength.

April PPI jumped 1.4% MoM vs 0.5% expected, biggest gain since March 2022.

Annual wholesale inflation hit 6%, raising fears of higher costs and margin pressure.

Hot inflation pushed Treasury yields to 2026 highs, with the 10-year near 4.5%.

Rising yields pressured retail, banks, and consumer-facing sectors on the Dow.

NVIDIA rose over 2%, Micron jumped 4%+, and VanEck Semiconductor ETF added 1%.

AI demand kept chipmakers strong even as broader markets slipped.

Philly Semiconductor Index is up 64% since March 30, vs S&P 500’s 17% gain.

Gartner sees chip revenue hitting $1.3T this year, up 64% on AI infrastructure.

Semiconductors now make up 18% of S&P 500 weight, raising concentration risk.

Analysts warn the rally is narrow and vulnerable if macro conditions worsen.

Despite S&P 500 near records, only half its stocks are above 50-day averages.

Wolfe Research warns tech may need to consolidate amid oil and inflation risks.