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Stocks pressured after US inflation jump

US stocks lost ground on Tuesday after US inflation accelerated more than expected in April, clouding the outlook for interest-rate cuts and weighing on sentiment already unsettled by renewed tensions around Iran. The pullback was led by technology shares, while European equities also closed lower. In Asia, stocks were mostly higher on Wednesday, with chipmakers helping lift regional benchmarks as investors looked ahead to a meeting between US President Donald Trump and Chinese President Xi Jinping. 

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Inflation shown with icons

US technology shares came under pressure on Tuesday as renewed concerns over a possible escalation in the Iran conflict damped risk appetite, with the Nasdaq 100 falling 0.9% to 29,064.80 points after both it and the S&P 500 had reached record highs on Monday. The S&P 500 slipped 0.2% to 7400.96 points, while the Dow Jones Industrial Average edged up 0.1% to 49,760.56 points. Sentiment was also weighed down by US inflation data: consumer prices rose 3.8% year-on-year in April, up from 3.3% in March and the highest reading since May 2023, according to data released on Tuesday. The consumer price index increased 0.6% from the previous month, while core inflation, which excludes food and energy, rose 2.8% year-on-year and 0.4% on the month, leaving underlying price growth above the Federal Reserve’s 2% target. Headline inflation was driven largely by higher energy costs, particularly gasoline, while shelter, apparel and airline fares pointed to persistent price pressures beyond energy.

Asia markets mostly higher

Asia-Pacific equities traded mostly higher on Wednesday, with investors awaiting a meeting between Trump and Xi. South Korea’s Kospi outperformed, rising 2.1% as chipmakers advanced, with SK Hynix jumping after reports that Nvidia chief executive Jensen Huang will join Trump’s China visit, raising hopes for stronger semiconductor demand. Japan’s Nikkei 225 was trading 0.8% higher, Hong Kong’s Hang Seng Index gained 0.1% and mainland China’s CSI 300 rose 0.5%. Australia’s S&P/ASX 200 bucked the trend, trading 0.5% lower, while India’s Nifty 50 was essentially flat.

German sentiment improves in May

Germany’s ZEW economic sentiment indicator rose to minus 10.2 points in May from minus 17.2 in April, data released on Tuesday showed, ending two months of sharp declines but remaining in negative territory. The gauge of current conditions worsened to minus 77.8 from minus 73.7, while the institute said weak industrial output, higher energy prices and inflation above 2% continued to weigh on the economy despite hopes for a recovery in the second half of 2026. A separate data release on Tuesday showed Germany’s inflation rate accelerated to 2.9% year on year in April, up from 2.7% in March and 1.9% in February. Consumer prices rose 0.6% from March, as energy costs increased 10.1% from a year earlier, driven largely by the conflict in Iran and the wider Middle East, with motor fuels up 26.2%. European equities ended Tuesday in negative territory. The Euro Stoxx 50 fell 1.4%, while Germany’s DAX lost 1.6%.

Swiss producer prices rise in April

Switzerland’s producer and import price index rose 0.8% in April from March to 100.5, data released on Tuesday showed, while the index was 2% lower than a year earlier. The monthly increase was driven mainly by higher prices for petroleum products, petroleum and natural gas, and basic metals, with the import price index jumping 2.3% and the producer price index edging up 0.2%. Imported energy prices were a major factor, with petroleum products surging 53.2% from March and 58.4% from a year earlier, while petroleum and natural gas rose 58.4% on the month. Despite the April rebound, the overall price level for domestic and imported products remained below its level of April 2025. Switzerland’s SMI outperformed European markets, edging up 0.1% on Tuesday.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Alibaba, Allianz, Cisco, Deutsche Telekom, E.ON, Merck, RWE, Siemens, SoftBank, Tencent, and Zurich.

Economic data in focus: French unemployment rate (07:30), French Consumer Price Index (08:45), EU gross domestic product (11:00), euro-area manufacturing production (11:00), US Producer Price Index (14:30), Bank of Canada monetary policy meeting minutes (19:30), European Central Bank President Christine Lagarde speaks (21:15).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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