S&P 500 and Nasdaq Slip From Records as Stocks End Lower

U.S. The move came after the release of consumer price index data that showed inflation running hotter than economists had anticipated. The CPI report indicated price pressures remain elevated, prompting traders to reassess expectations for monetary policy easing.

Bond yields rose in response to the data, with the 10-year Treasury yield climbing above 4.3 percent according to market participants. Semiconductor stocks led the decline, contributing to broader weakness in technology shares. The drop in chip companies weighed on the Nasdaq, which had set a fresh intraday record before reversing course.

The S&P 500 finished the day down 0.4 percent after trading above the 6,000 level for the first time earlier in the session. The data showed headline CPI rising 0.4 percent month-over-month, exceeding forecasts.

The session marked a pause in the recent rally that had driven major indexes to repeated records in recent weeks. Investors continue to monitor incoming economic data for signals on when the Federal Reserve might adjust its benchmark interest rate. The hotter CPI reading comes amid ongoing debate about the trajectory of inflation and its impact on consumer spending and corporate earnings.

Markets will look ahead to additional reports, including producer prices and retail sales data, in the coming days.