Investment Daily: US stocks and Treasuries fell on inflation concerns
13 May 2026
Key takeaways
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US stocks and Treasuries fell.
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European stocks and government bonds fell.
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Asian stocks mostly fell.
Markets
US stocks fell on Tuesday amid renewed inflation concerns and higher Treasury yields. The S&P 500 fell 0.2%, as the tech-heavy Nasdaq dropped 0.7%.
US Treasuries fell on hotter-than-expected April CPI data and higher oil prices. 10-year yields climbed 5bp to 4.46%.
European stocks fell on Tuesday amid ongoing geopolitical tensions. The Euro Stoxx 50 fell 1.5%. The German DAX dropped 1.6%, while the French CAC lost 0.9%. In the UK, the FTSE 100 closed flat.
European government bonds fell. 10-year German bund yields rose 6bp to 3.10% while 10-year French bond yields climbed 8bp to 3.74%. In the UK, 10-year gilt yields closed 10bp higher at 5.10%.
Asian stock markets traded mixed but mostly lower on Tuesday amid ongoing geopolitical concerns. Korea’s Kospi ended a choppy session down 2.3% following officials’ remarks on AI profit taxation, while Japan’s Nikkei 225 rose 0.5%, led by gains in AI-related stocks. China’s Shanghai Composite and Hong Kong’s Hang Seng both fell 0.2% while India’s Sensex lost 1.9%.
Crude oil prices extended gains on Tuesday. WTI crude for June delivery settled 4.2% higher at USD102.2 a barrel.
Key Data Releases and Events
Releases yesterday
In the US, headline CPI inflation rose 3.8% yoy in April, from 3.3% yoy in March, boosted by higher energy prices and airfares. Small business optimism held nearly flat at 95.9 in April, reflecting persistent caution. Inflationary pressures and labour challenges continue to act as key headwinds, although most of the small businesses report using AI to boost efficiency rather than cut jobs.
In Brazil, headline inflation rose further to 4.4% yoy in April, from 4.1% yoy in March, while underlying inflationary pressures also continued to build.
India’s CPI rose to 3.5% yoy in April from 3.4% yoy in March on higher food prices. The pass-through from the global energy shock was still contained as fuel prices were kept unchanged in April.
Releases due today (13 May 2026)
In the US, higher energy prices are likely to push PPI higher. Trade services have been volatile recently.
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