U.S. stocks closed mixed Wednesday as profit-taking swept through semiconductor shares on renewed inflation concerns, with investors turning their attention to President Donald Trump's visit to China amid stalled ceasefire talks between the United States and Iran.
The Dow Jones Industrial Average rose 56.09 points, or 0.11%, to close at 49,760.56 on November 12 (local time). The Standard & Poor's 500 index fell 11.88 points, or 0.16%, to 7,400.96, while the Nasdaq Composite Index dropped 185.92 points, or 0.71%, to 26,088.20.
Among large-cap technology stocks, Microsoft (-1.19%), Amazon (-1.18%), Google parent Alphabet (-0.33%), Broadcom (-2.13%) and Tesla (-2.60%) finished lower. Nvidia (0.61%), Apple (0.72%) and Facebook parent Meta (0.69%) closed higher. Profit-taking was particularly heavy in semiconductor-related stocks that had posted sharp gains, including Micron (-3.61%), Intel (-6.82%), AMD (-2.29%), Qualcomm (-11.46%) and TSMC (-1.79%).
The market was weighed down by April's U.S. Consumer Price Index (CPI). According to the U.S. Labor Department, April CPI rose 0.6% from March. While the increase was smaller than March's 0.9%, it remained higher than levels before the Iran war. Compared with April of last year, CPI rose 3.8%, the highest reading in three years since May 2023. The year-on-year figure exceeded both March's 3.3% and the market consensus of 3.7%. Core CPI, which excludes food and energy, also rose 0.4% from the previous month, topping March's 0.2% and the market consensus of 0.3%. The year-on-year increase in core CPI came in at 2.8%, higher than March's 2.6% and the market consensus of 2.7%. The figures indicate that U.S. inflation last month was elevated even excluding energy price increases driven by the Middle East war.
Renewed tensions between the United States and Iran also pressured the market. Trump dismissed a ceasefire proposal recently presented by Iran as "garbage," calling the country "at its weakest, unbelievably." CNN reported that Trump has been seriously considering a resumption of large-scale combat in recent weeks.
Market participants also turned their attention to Trump's November 13-15 visit to China and the U.S.-China summit. The meeting between Trump and President Xi is scheduled for 10 a.m. on November 14. It will be the two leaders' first meeting in six months since their October 30 encounter in Busan last year. It is also the first visit by a U.S. president to China in nine years since Trump's first-term visit in November 2017.
Speaking to reporters at the White House in Washington, D.C., just before departing for Beijing, Trump said, "I will discuss trade above all else with Chinese President Xi Jinping." On the Iran war, Trump said, "We will have a long conversation about it," but added, "Frankly, I wouldn't say Iran is one of the topics of discussion." He continued, "Iran is being well managed by us, so they will either make a deal or be wiped out."
The U.S. Senate also confirmed Kevin Warsh, a candidate for chairman of the U.S. Federal Reserve, as a Federal Reserve Board governor on the same day. A vote on Warsh's confirmation as chairman is expected to be held on November 13.
The 30-year U.S. Treasury yield rose 0.04 percentage point from the previous session to 5.03%, breaking back above the psychological resistance level of 5% for the first time since November 5. On the ICE Futures Exchange in London, Brent crude futures rose 3.4% to $107.77 per barrel, while West Texas Intermediate (WTI) crude futures for June delivery on the New York Mercantile Exchange climbed 4.2% to $102.18 per barrel.
