Tuesday - May 12, 2026

Brian Szytel recaps a modest down day in markets after recent all-time highs, noting the Dow slightly positive while the S&P 500 and Nasdaq fell, with year-to-date gains still strong. He explains that high-momentum semiconductor and tech names sold off as longer-duration stocks reacted to higher interest rates, driven partly by rising energy prices; the 10-year yield moved up to about 4.45% and expectations for a Fed rate cut this year have faded. He reviews the latest CPI report: headline inflation came in as expected at 0.6% month-over-month and 3.8% year-over-year, while core CPI was slightly above expectations at 0.4% and 2.8%, with a shelter-data quirk cited. He discusses how elevated oil and gasoline prices tied to Middle East tensions could pressure consumers and earnings, though consumer balance sheets and corporate earnings remain strong. He also notes the NFIB small business survey near 95 and addresses a question about Kevin Warsh’s investment disclosures, dismissing concerns as overblown.

00:00 Market Recap Snapshot

00:51 Momentum Stocks Pullback

01:20 Rates Rise on Oil

01:56 CPI Breakdown Explained

03:17 Energy Shock and Consumers

04:20 NFIB Small Business Read

04:40 Warsh Fed Chair Controversy

06:11 Wrap Up and Tomorrow Preview

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com