Wall Street Closes Mixed, Inflation and Iran War Concerns Drag Nasdaq Down

NEW YORK, KOMPAS.com - The United States (US) stock market or Wall Street closed mixed on Tuesday (12/5/2026) US time. The Nasdaq and S&P 500 indices weakened due to pressure on technology stocks, rising US inflation, and market concerns over the Iran conflict that could trigger a surge in energy prices and reduce the chances of a Federal Reserve rate cut this year. This situation has led market participants to set aside stock market rallies and shift focus to the first-quarter earnings season as well as the direction of US central bank or Federal Reserve interest rate policies. Citing Reuters on Wednesday (13/5/2026), the Dow Jones Industrial Average closed up 56.09 points or 0.11 percent at 49,760.56. Of the 11 major sectors in the S&P 500 index, the non-essential consumer goods and technology sectors recorded the deepest declines. In contrast, the healthcare and essential consumer goods sectors provided support for market gains. The weakening of technology stocks became the main factor dragging the Nasdaq into negative territory. On the other hand, the strengthening of healthcare sector stocks, supported by a surge in Humana shares, helped keep the Dow Jones in positive territory. Although under pressure, the S&P 500 and Nasdaq indices are still near all-time highs. However, as the earnings season ends, investors are beginning to shift attention to market valuations, macroeconomic conditions, and global geopolitical developments. The PHLX Semiconductor Index did fall 3 percent in this trading session. However, year to date, the index has still surged 65.4 percent, driven by market optimism towards developments in artificial intelligence (AI) technology. “Our prediction is for the market to stabilise because greed occurs during the earnings season and fear afterwards,” said Jay Hatfield, CEO and Portfolio Manager of InfraCap in New York. From an economic perspective, the latest data shows that US consumer prices rose faster than analysts’ expectations last month.