Stocks Sink on Hottest Inflation Reading in Years, Jump in Oil

Traders pulled back from risk assets, with a torrid run in US equities hitting a wall 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 fell 0.2% on Tuesday in New York, while the Nasdaq 100 Index slid 0.9%. Technology stocks were the biggest laggards after weeks of outsized gains, with heightened risks around geopolitics and inflation adding another level of uncertainty for markets already contending with elevated valuations. The Philadelphia Semiconductor Index dropped 0.9% after surging some 60% in six weeks.