US benchmark equity indexes were mostly lower intraday, weighed down by a technology sell-off, as investors assessed the latest consumer inflation report.
The Nasdaq Composite was down 1.5% at 25,886.7 after midday Tuesday, while the S&P 500 fell 0.6% to 7,368.1. Both indexes hit new peaks in the previous session. The Dow Jones Industrial Average was little changed at 49,708.5.
Among sectors, tech saw the steepest decline, shedding 2%, while healthcare paced the gainers.
Shares of several big tech names were down intraday Tuesday, with Qualcomm (QCOM) sliding 13%, the worst performer on the S&P 500. Intel (INTC) followed Qualcomm on the index, down 9.3%. Salesforce (CRM) declined 2.9%, the steepest decline on the Dow.
Oracle (ORCL), Advanced Micro Devices (AMD) and Dell Technologies (DELL) fell about 5% each. Amazon.com (AMZN) and IBM (IBM) also logged declines, with Microsoft (MSFT) and Nvidia (NVDA) marginally lower.
In economic news, US annual consumer inflation accelerated in April to the fastest pace in almost three years as energy prices surged amid the near-complete closure of the Strait of Hormuz. Core inflation, which excludes the volatile food and energy components, accelerated to the fastest since September, official data showed.
"A hotter-than-expected CPI report underscores the ongoing impact of higher energy prices seeping further into the economy with the core jumping to a seven-month high," Stifel Chief Economist Lindsey Piegza said in a note emailed to.
Energy prices surged nearly 18% annually last month, marking the biggest jump since September 2022, official data showed.
"This morning's numbers reinforce why the (Federal Reserve) needs to remain patient," Thomas Feltmate, senior economist at TD Economics, said in a report. "With secondary price effects from higher energy prices likely to intensify in the months ahead, we're likely to see core measures of inflation drift a bit higher and hover around 3% through year-end."
The Fed, which late last month kept its policy rate steady for a third consecutive meeting, is widely expected to stay put again next month, according to the CME FedWatch tool.
US Treasury yields were higher intraday Tuesday, with the 10-year rate up 4.9 basis points at 4.46% and the two-year rate rising 4.4 basis points to 4.01%.
West Texas Intermediate crude was up 3.7% at $101.67 per barrel intraday Tuesday, while Brent rose 3.3% to $107.66.
US President Donald Trump recently rejected Iran's counteroffer to end the war, extending uncertainty around oil flows through the crucial Strait of Hormuz.
Trump is now more seriously considering restarting military operations against Iran than he has in recent weeks, CNN reported, citing his aides.
"The global oil market continued to tighten amid limited prospects for a reopening of the Strait of Hormuz." Saxo Bank said in a report.
In company news, EBay (EBAY) rejected video game retailer GameStop's (GME) proposal to acquire the e-commerce company in what would have been a $55.5 billion deal. EBAY shares were up 0.8% intraday, while GameStop fell 0.7%.
Gold was down 0.9% at $4,688.10 per troy ounce, while silver lost 0.4% to $85.60 per ounce.
