Producer Inflation Data Drives Markets 13/05/2026

 HOT stories for today

Market wrap:

• U.S. stocks eased Tuesday, with the S&P 500 and Nasdaq Composite pulling back from record highs as technology shares cooled and oil prices climbed. The S&P 500 slipped 0.2%, while the tech-heavy Nasdaq lost 0.7%. The Dow Jones Industrial Average bucked the weakness, rising 56.09 points, or 0.1%. Pressure came from renewed concerns over the U.S.-Iran ceasefire after President Donald Trump called the agreement “unbelievably weak” and “on massive life support,” following his rejection of Tehran’s latest counterproposal. Investors also digested a hotter-than-expected April CPI report, with annual consumer prices rising at the fastest pace in about three years.
• Attention now shifts to Wednesday’s producer price index, where economists expect a 0.5% monthly headline increase and a 0.4% rise excluding food and energy. Technology took a breather, though AI remains the market’s dominant theme this year. Health care outperformed Tuesday, while consumer discretionary was the weakest sector, falling 1.1%. Earnings from Allianz, Birkenstock, Alibaba and Nebius are due before Wednesday’s opening bell.

Inflation Is Beating Paychecks Again

• For many Americans, rising prices are once again outpacing wage growth, putting additional pressure on household budgets already strained by higher energy costs and persistent inflation. Consumer prices rose 3.8% year over year in April, driven largely by the ongoing impact of the Iran conflict on energy markets. Wage growth, meanwhile, increased 3.6%, marking the first time since 2023 that inflation has overtaken average hourly earnings. Economists warn the squeeze may persist for much of 2026, especially for lower-income households. Higher gasoline, diesel and fertilizer costs are increasingly feeding through to everyday expenses, making inflation harder for consumers to avoid.
•  The pressure is also exposing a widening divide in the labor market. According to Bank of America (BAC), wage growth for lower-income households rose just 1.5% last month, while higher-income workers saw pay increase 6%, the widest gap in the bank’s data series. Economists say the labor market remains stable, but workers have less leverage than in previous years. Hiring activity has slowed, job switching has become more difficult, and companies are increasingly tying wage growth to specialized skills and productivity rather than broad labor shortages. Many analysts now expect real wages, income adjusted for inflation, to remain flat or slightly negative for parts of the population even if the Middle East conflict eventually eases and energy prices retreat.

Stocks on the move:

• Nextpower (NXT): Shares jumped 10% after the energy company raised its full-year revenue outlook and posted better-than-expected fiscal fourth-quarter earnings and revenue.
• Karman (KRMN): Shares dropped nearly 11% after first-quarter adjusted earnings missed estimates, despite revenue and adjusted EBITDA coming in above forecasts.
• Resideo Technologies (REZI): Shares fell 7% after current-quarter earnings and revenue guidance missed expectations, even though first-quarter results beat on both the top and bottom lines.
• Oklo (OKLO): Shares slipped 2% after the nuclear company reported a wider-than-expected first-quarter net loss and operating loss.

Watchlist: OKLO, MU, NXT, NVDA, BABA, NBIS, TSEM, CSCO

Key Economic Events Today:

EST time

08:30 am: USD Core PPI, CPI
10:30 am: USD Crude Oil Inventories
11:30 am: USD FOMC Member Collins Speaks
01:01 pm: USD 30 y Bond auction
01:15 pm: USD FOMC Member Kashkari Speaks


Earnings

BMC (Before Market Open): Alibaba Group (BABA), Takeda Pharma (TAK), Nebius Group (NBIS), Tower Semiconductor. (TSEM)

AMC (After Market Close): Cisco Systems (CSCO), Stantec Inc. (STN), Amdocs Limited (DOCS)




The TEFS Analyst team wishes you a successful day!