US Stocks Retreat on Hotter-Than-Forecast Core CPI, Jump in Oil

Traders pulled back from risk assets, with a torrid run in US equities running out of steam as April inflation data came in hotter than economists’ estimates and worsening tensions between Washington and Iran sent oil prices higher.

The S&P 500 Index dropped 0.5% as of 9:50 a.m. on Tuesday in New York, while the Nasdaq 100 Index was down about 0.7%. Technology stocks lagged after weeks of outsized gains, with heightened risks around geopolitics and inflation adding another level of uncertainty for markets already contending with elevated valuations.