The three major stock indexes on Wall Street opened lower across the board. The escalation of tensions between the United States and Iran and the release of April's consumer price index (CPI) are seen as factors.
At 9:33 a.m. on the 12th local time at the New York Stock Exchange, the Dow Jones Industrial Average was down 338.8 points, or 0.68%, at 49,365.67. The Standard & Poor's (S&P) 500 was down 41.57 points, or 0.56%, at 7,371.27, and the Nasdaq composite was down 213.88 points, or 0.81%, at 26,060.25.
The U.S. Department of Labor said April CPI rose 3.8% from a year earlier. That is the highest since May 2023, about three years ago. It is slightly above the market consensus of 3.7%.
Core CPI, which excludes food and energy, rose 2.8% from a year earlier. That means most of the increase in consumer prices was driven by energy and food. As tensions between the United States and Iran drag on, the impact from higher international oil prices appears to have played a role.
By contrast, there is little sign that tensions between the United States and Iran will ease. It suggests a greater likelihood that the war will drag on rather than enter a de-escalation phase.
U.S. President Donald Trump even called Iran's proposed cease-fire plan a "stupid proposal." Some noted that as cease-fire talks with Iran fail to find direction, hostilities could resume.
With the domestic and international environment surrounding the United States turning unfavorable, stocks are also weakening.
Nvidia and Apple are up 1.21% and 0.29%, respectively, but most tech stocks are weaker. Microsoft is down 1.28%, Amazon.com 1.33%, and Alphabet A 0.48%.
Meanwhile, in the biotech sector, Eli Lilly is up 2.01%, Johnson & Johnson 1.16%, and AbbVie 1.2%, showing strength.
As the U.S.-Iran conflict is back in the spotlight, international oil prices are rising. The front-month June 2026 West Texas Intermediate (WTI) contract is up 3.22% from the previous session at $101.23 a barrel.