Stubbornly high inflation, driven by soaring energy costs from the war with Iran, rattled the markets as the April Consumer Price Index surged to a three-year high of 3.8%, pushing any hope of Federal Reserve rate cuts off the table. Amid the market downturn, Tesla shares also slipped as CEO Elon Musk prepares to join President Trump's trade delegation to China, where he will seek crucial approval for the company's Full Self-Driving software to combat falling sales. The day's corporate news was also marked by significant deal-making drama, including e-commerce giant eBay formally rejecting a $56 billion takeover bid from GameStop and an activist push by Nelson Peltz to take Wendy's private.

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