Stocks Slip as Hormuz Standoff Lifts Oil Ahead of Today's CPI Report

U.S. stocks pulled back Tuesday as the impasse between Washington and Tehran over reopening the Strait of Hormuz kept oil prices elevated heading into today's key inflation data. The Dow Jones Industrial Average fell 184 points, or 0.34%, to 53,791.85, the S&P 500 slipped 0.32% to 7,728.20, and the Nasdaq Composite shed 0.6% to 26,445.45.

Communication services led the decliners, with Alphabet down 3.8%, while crude futures climbed more than 1% as hopes faded for a near-term deal to restore energy flows through the strait. Gold edged higher, extending its run near record levels.

Attention now turns to the July consumer price index, due at 8:30 a.m. ET Wednesday. Economists expect a monthly reading of around 0.2%, which would be benign enough to keep the Federal Reserve signaling a hold on rates even as the oil rally rekindles inflation concerns.