Forget Earnings! The Most Important Data Release of the Month Is Imminent, and It's Likely to Rattle the Stock Market.

3 days ago 3

Sean Williams, The Motley Fool

Tue, May 12, 2026 astatine 3:26 AM CDT 4 min read

For astir investors, net play is the pinnacle of each quarter. The six-week play wherever astir S&P 500 (SNPINDEX: ^GSPC) companies assistance the hood connected their quarterly operating results provides penetration into the wellness of firm America and the sustainability of bull and carnivore markets connected Wall Street.

But thing adjacent much important than net releases is slated for today, and it has the imaginable to rattle the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500, and Nasdaq Composite (NASDAQINDEX: ^IXIC). Investors, buckle up, due to the fact that it's inflation study day!

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Jerome Powell speaking with reporters pursuing a Federal Open Market Committee meeting.

Inflation is rapidly picking up successful the aftermath of the Iran warfare

According to outgoing Fed Chair Jerome Powell, whose last time arsenic caput of the Federal Reserve is this Friday, May 15, the U.S. system is navigating 2 terms shocks: President Donald Trump's tariffs and the Iran war.

It's been much than 2 months since Trump gave the U.S. subject the greenish airy to commence attacks against Iran. Since astir Feb. 28, Iran has closed the Strait of Hormuz to virtually each commercialized vessels. This stoppage has stymied astir 20% of the world's regular liquid petroleum proviso -- the largest vigor proviso disruption successful modern history.

The astir contiguous interaction of this warfare has been felt astatine the substance pumps, wherever state prices person jumped astatine their fastest gait successful implicit 30 years. But this is apt conscionable the extremity of the iceberg.

Historically, the interaction of vigor terms shocks connected businesses lags by a mates of months. When higher proscription and accumulation costs statesman moving their mode into economical data, a 2nd inflationary surge tin often beryllium identified.

In February, the U.S. Bureau of Labor Statistics (BLS) reported trailing 12-month ostentation of 2.4%. One period later, the interaction of the Iran warfare pushed the TTM Consumer Price Index (CPI) up 90 ground points to 3.3%.

According to estimates from the Federal Reserve Bank of Cleveland's Inflation Nowcasting tool, the CPI is expected to leap by 26 ground points to 3.56% successful April. The BLS volition merchandise the April ostentation information astatine 08:30 a.m. ET, contiguous (May 12).

Read Entire Article