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As on : 13-May-2026

Market Commentary - Foreign Markets
13-May-2026 11:32

Wall Street Pauses Record Run on Tech Selloff, Oil Surge

The S&P 500 fell 0.2% from its all-time high set the day before. The Dow Jones Industrial Average added 56 points, or 0.1%, while the Nasdaq composite sank 0.7% from its own record.

Oil prices rose further, weighing on Wall Street amid the ongoing war with Iran. Brent crude climbed 3.4% to settle at $107.77 per barrel, up sharply from $70 before the conflict, as a fragile U.S.-Iran ceasefire grows tenuous. The war has shut the Strait of Hormuz to oil tankers, trapping them in the Persian Gulf and disrupting global deliveries. This fueled worse-than-expected U.S. inflation last month, with April price increases accelerating even excluding gasoline and food costs.

Intel slumped 6.8% after its stock had more than tripled so far this year. Micron Technology dropped 3.6% after coming into the day with a gain of nearly 180% for the year to date, and CoreWeave sank 6.1% to cut into its gain of 60% for 2026.

The pullback for AI stocks began earlier in the day in Asia where South Korea's Kospi index sank 2.3% from its all-time high on worries that the government may redistribute windfall AI profits from companies to its citizens.

Treasury yields rose in the bond market following an initial zigzag, suggesting traders suspect the Federal Reserve will keep interest rates high to combat inflation.

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