![\"US](\"https:\/\/static.toiimg.com\/thumb\/msid-131043538,imgsize-1098578,width-400,height-225,resizemode-4\/article-44.jpg\" "\\"AI")
<\/div>\n<\/div>\n<\/div>\nUS stocks retreated on Tuesday as rising oil prices, sticky inflation and a selloff in technology shares cooled Wall Street\u2019s record-setting rally.The S&P 500 fell 0.6 per cent after closing at an all-time high in the previous session, while the Dow Jones Industrial Average dropped 288 points, or 0.6 per cent. The Nasdaq Composite declined 0.9 per cent, weighed down by sharp losses in artificial intelligence-linked stocks.Chipmakers and AI-focused companies led the decline after a blistering rally earlier this year. Intel Corporation fell 4.7 per cent, trimming gains after the stock had more than tripled in 2026. Micron Technology dropped 4 per cent, while CoreWeave slumped 8 per cent.Investor sentiment was also hit by another surge in oil prices as concerns mounted over the prolonged Iran conflict and disruptions to crude supplies through the Strait of Hormuz.The weakness in AI stocks followed a broader pullback in Asian markets, where South Korea\u2019s benchmark Kospi index tumbled 2.3 per cent from record highs amid concerns over potential government measures targeting AI-related profits.Brent crude rose 3.6 per cent to $107.99 per barrel as uncertainty surrounding the fragile US-Iran ceasefire kept markets on edge. The war has severely disrupted tanker movements through the key shipping route, fuelling fears of tighter global oil supplies.Higher energy prices also fed into fresh inflation worries after data released earlier on Tuesday showed US consumer prices rose more than expected in April. Sticky inflation strengthened expectations that the Federal Reserve could keep interest rates elevated for longer.Read more: US consumer price inflation hits 3.8% in April, highest in nearly 3 years, as Iran war fuels energy costs<\/a>Treasury yields edged higher following the inflation report, with the benchmark 10-year Treasury yield rising to 4.45 per cent from 4.42 per cent late Monday.Markets are increasingly pricing in a prolonged pause in rate cuts, with some traders now betting on the possibility of a Federal Reserve rate hike before the end of the year, according to CME Group data.Among individual stocks, Zebra Technologies surged 13.6 per cent after reporting quarterly earnings and a full-year profit outlook above analysts\u2019 expectations.On the other hand, Under Armour plunged 19.1 per cent after posting a wider-than-expected quarterly loss.GameStop slipped 1.9 per cent after eBay rejected its takeover proposal, citing concerns over financing and deal credibility.In Europe, Germany\u2019s DAX index fell 1.3 per cent and France\u2019s CAC 40 declined 1 per cent, while Japan\u2019s Nikkei 225 closed 0.5 per cent higher.<\/div>\n