Markets in North America were mixed on Tuesday as U.S. inflation data spurred a rotation away from the technology sector while higher oil prices benefited Canadian energy stocks.

“As investors are spooked by inflation fears, they’ve taken profits from the tech companies, so you see the Nasdaq down significantly. And they’re piling into some safe haven assets like the U.S. dollar,” said Ashish Utarid, assistant vice-president of investment strategy with IG Wealth Management.

U.S. consumer prices climbed sharply again last month as the 10-week war with Iran delivered higher gasoline prices and more pain for Americans. The U.S. Labor Department’s consumer price index rose 3.8 per cent from April 2025, the biggest jump in three years, and up from a 3.3 per cent year-over-year gain in March.

“The big news today is gas prices,” Utarid said.

“Gas in the U.S. got very expensive over the last couple of months, and we’re looking at close to a 17 per cent increase year-over-year just on fuel prices alone, which is spooking investors and the markets in general for inflation risks moving forward.”

The S&P/TSX composite index was up 151.85 points at 34,290.73.

In New York, the Dow Jones industrial average was up 56.09 points at 49,760.56. The S&P 500 index was down 11.88 points at 7,400.96, while the Nasdaq composite was down 185.92 points at 26,088.20.

Some of the sharpest drops hit chip companies and stocks that had been on electric runs because of the artificial-intelligence boom. Intel slumped 6.8 per cent after its stock had more than tripled so far this year. Micron Technology dropped 3.6 per cent after coming into the day with a gain of nearly 180 per cent year to date, and CoreWeave sank 6.1 per cent to cut into its gain of 60 per cent for 2026.

Also weighing on Wall Street was another rise in oil prices as the war threatens to drag on. The price for a barrel of Brent crude climbed 3.4 per cent to settle at US$107.77 as a fragile U.S.-Iran ceasefire looks more tenuous.

The June crude oil contract was up US$4.11 at US$102.18 per barrel.

The war has essentially shut the Strait of Hormuz to oil tankers, keeping them stuck in the Persian Gulf instead of delivering crude to customers worldwide.

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

The Fed has been keeping its cuts to interest rates on hold recently, as it waits to see how high inflation will go because of the war with Iran and the tariffs introduced by U.S. President Donald Trump. That’s because lower rates can worsen inflation at the same time that they give the economy a boost.

In the Canadian stock market, energy stocks helped offset losses in the technology sector.

Shopify Inc. shares lost 2.43 per cent on the day and were the biggest weight on the TSX. On the flip side, Canadian Natural Resources Ltd. and Suncor Energy Inc. added the most points to the index, rising 4.06 per cent and 2.32 per cent respectively.

The Canadian dollar traded for 72.94 cents US compared with 73.17 cents US on Monday.

The June gold contract was down US$42.00 at US$4,686.70 an ounce.

This report by The Canadian Press was first published May 12, 2026.

— With files from The Associated Press.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX: SHOP, TSX: CNQ, TSX:SU)

Daniel Johnson, The Canadian Press