# U.S. equities tumbled from record highs Tuesday after a hotter-than-expected April inflation report consolidated worries that the Federal Reserve will not cut interest rates this year.

*business · news · 2026-05-12 · Benzinga*

## Key points

- April Consumer Price Index reached 3.8% year-over-year, the highest since March 2023.
- Market expectations for a Fed rate cut in 2024 have nearly evaporated after the inflation report.
- 30-year Treasury yield surpassed 5.02%, a key psychological threshold.
- South Korea is considering an 'AI Citizen Dividend,' impacting chip sector stocks globally.

**Companies:** QUALCOMM Incorporated
**Countries:** United States, South Korea, Iran

[Read the full story on Benzinga](https://www.benzinga.com/markets/equities/26/05/52499209/nasdaq-100-dips-hot-cpi-sandisk-micron-tumble-stock-market-today)

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