---
title: "Why Is the Stock Market Down Today, 5/12/26?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286124428.md"
description: "Both the S&P 500 and Nasdaq 100 are down as investors react to a higher-than-expected inflation report. The Consumer Price Index rose 3.8% year-over-year in April, surpassing estimates and indicating weaker consumer purchasing power. Core CPI also exceeded expectations, leading to increased odds of a rate hike, with the likelihood of a rate cut by year-end dropping significantly. Gas prices contributed notably to the CPI increase, highlighting broader inflationary pressures in the economy."
datetime: "2026-05-12T14:28:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286124428.md)
  - [en](https://longbridge.com/en/news/286124428.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286124428.md)
---

# Why Is the Stock Market Down Today, 5/12/26?

Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading lower on Tuesday as investors digest an inflation report from the Bureau of Labor Statistics (BLS).

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In April, the Consumer Price Index (CPI) rose 3.8% year-over-year, topping the estimate of 3.7% and marking the highest rate since 2023. It also outpaced wage growth, which was 3.6% during the month, for the first time since 2023, signaling weaker consumer purchasing power. CPI increased by 0.6% on a monthly basis, in line with expectations.

## **Inflation Rises as Rate Hike Odds Jump**

The gas index increased by 3.8% month-over-month in April and accounted for 40% of the monthly rise in CPI. However, it isn't just gas prices that are on the rise. Core CPI, which excludes volatile food and energy prices, grew by 0.4% month-over-month and 2.8% year-over-year. Analysts were expecting 0.3% and 2.7%, respectively.

Rate cut odds this year now appear slim as expectations for a rate hike gained momentum following the report. The odds of a rate cut by year-end slipped to 2.8% from 3.7% a day ago on the CME FedWatch tool, while the odds of higher rates rose to 35.4% from 23.6%.

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