US stock market today: S&P 500, Nasdaq futures drop as crude oil stays elevated; inflation accelerates in April

US stock futures opened lower on May 12, 2026, as Nasdaq 100 futures declined 0.8% and S&P 500 futures slipped 0.4%, following a record-breaking rally in chip stocks that has since cooled. The Dow Jones Industrial Average futures fell slightly by 0.03%, reflecting broader market caution amid rising geopolitical risks in the Middle East. Tensions between the US and Iran escalated after President Donald Trump dismissed a recent Iranian peace proposal, calling the ceasefire 'on life support.' Iran’s response included demands for war damage compensation and full sovereignty over the Strait of Hormuz, but the US rejected it, raising fears of prolonged conflict. The Strait remains effectively closed after over two months of war, disrupting global shipping and oil supplies. US inflation surged to 3.8% in April, the highest rate since May 2023, driven by soaring crude oil prices linked to the Iran conflict. Brent crude futures reached $108 per barrel, up nearly 50% from pre-war levels of around $70, while WTI crude climbed to $102.05, exacerbating inflationary pressures. The AI-driven tech rally is showing signs of fatigue, particularly in semiconductor stocks that led the market’s recent gains. South Korean firms like Samsung Electronics and SK Hynix declined sharply amid concerns over potential new taxes on AI-related profits. Analysts warn that prolonged Middle East tensions could further destabilize markets, supply chains, and global economic growth. Market volatility is expected to persist as investors weigh the risks of rising oil prices, inflation, and geopolitical instability. The US economy had shown resilience with the S&P 500 and Nasdaq posting six consecutive weekly gains, but the current downturn signals growing uncertainty.