Stocks retreated from recent highs on Tuesday as investors turned cautious ahead of key inflation data due later this week and watched a fresh climb in oil prices tied to rising Middle East tensions. All three major indexes finished lower, with the tech-heavy Nasdaq bearing the brunt of the selling as traders trimmed exposure to the market’s biggest winners. Gains in energy and utility shares helped cushion the broader decline, but the overall mood was defensive as Wall Street waited for the next read on prices.
What Moved Markets
The Dow Jones Industrial Average slipped 184.01 points, or 0.34 percent, to close at 53,791.97. The S&P 500 fell 24.92 points, or 0.32 percent, to end at 7,728.19, backing away from its recent record territory. The Nasdaq Composite was the weakest of the group, dropping 159.91 points, or 0.60 percent, to finish at 26,445.45 as large technology names lost ground.
The main driver was a wait-and-see posture ahead of this week’s inflation report, which investors expect to shape the Federal Reserve’s next move on interest rates. A hotter-than-expected reading could push back hopes for rate cuts, while a cooler number would support the case for easing. At the same time, rising tensions around the Strait of Hormuz sent oil prices higher, with U.S. crude topping 83 dollars a barrel. That lifted energy stocks, which gained more than 1 percent, but added to worries that higher fuel costs could keep inflation sticky.
Notable Movers
Riot Platforms (RIOT) surged 7.2 percent after signing a 20-year, 9.1 billion dollar data center lease agreement with AI lab Anthropic, a deal that highlights the growing overlap between crypto miners and artificial intelligence infrastructure.
Purple (PRPL) tumbled 23 percent after disappointing second-quarter results led the mattress maker to cut its 2026 revenue guidance to a range of 420 million to 440 million dollars, down from a prior outlook of 465 million to 485 million dollars.
On Holding (ONON) dropped 18 percent after the athletic footwear company reported second-quarter revenue growth of 21.6 percent, short of analyst expectations near 24 percent, and lowered its full-year growth outlook.
Oportun Financial (OPFI) also fell 18 percent after the consumer lender missed earnings estimates and reduced its revenue and net income forecasts for the rest of the year.
Looking Ahead
The spotlight now shifts to this week’s inflation data and any accompanying commentary from Federal Reserve officials, both of which could set the tone for stocks heading into the second half of August. Investors will also keep a close watch on oil prices and developments around the Strait of Hormuz, since further gains in crude could complicate the inflation picture. With the indexes sitting near record levels, traders may stay cautious until they get a clearer signal on the direction of interest rates.