Wall Street slips as inflation, Iran tensions weigh.

The S&P 500 and the ⁠Nasdaq ⁠eased from record highs on Tuesday as hotter-than-expected inflation ⁠data and an increasingly tenuous U.S.-Iran ceasefire prompted investors to take money off the table near the end of ​a robust first-quarter earnings season.

Weakness in tech shares dragged the Nasdaq down the most, while healthcare stocks, buoyed by a jump in Humana, helped limit the Dow’s losses.

Despite the selloff, ‌the S&P 500 and the Nasdaq remain close ‌to all-time highs.

As reporting season wraps up, investors are increasingly focused on valuations, macroeconomics and geopolitical developments.

While the PHLX Semiconductor index tumbled 4.8%, the index has soared 62.4% this ⁠year, benefiting from the ⁠fervor about artificial intelligence.

Economic data showed consumer prices rising at a faster pace ​than analysts anticipated as the closure of the Strait of Hormuz due to the war with Iran continued to disrupt crude supply.

“It was a slightly disappointing CPI report that showed inflation is relatively high, and it reinforces the notion that the (U.S. Federal Reserve) is not going to be able to lower rates this year,” said Oliver Pursche, senior vice president at Wealthspire Advisors, ​in New York.

“We’ve seen this multiple times this year, where it’s kind of the two steps forward, one step back market cycle,” Pursche added. “Some of ⁠the ⁠chipmakers that are selling off the ⁠most, they’re still up sharply year-to-date.”

That ​war, in its 11th week, showed no signs of a near-term resolution. U.S. President Donald Trump declared the truce was “on life support” after Tehran ​rejected a U.S. proposal to end the conflict, ⁠sticking with a list of demands Trump called “garbage.”

The notion of a protracted conflict raises the probability that spiking energy prices could metastasize into broader, more entrenched inflation. That has all but squelched any hopes for an interest rate cut from the Fed this year under the presumed chairmanship of Trump nominee Kevin Warsh, whom the U.S. Senate confirmed on Tuesday.

The odds of a rate hike are rising. Financial markets are pricing in a 31.5% likelihood that the central bank will implement a 25-basis-point increase to its Fed ⁠funds target rate in December, up from 21.5% on Monday, according to CME’s FedWatch tool.

Trump is scheduled to travel to Beijing ⁠this week to meet Chinese counterpart Xi Jinping to address a wide array of issues, including tariffs, U.S. military aid to Taiwan, China’s potential role in brokering a peace deal with Iran, and the extension of a trade agreement regarding critical rare earth metals.

The Dow Jones Industrial Average fell 4.18 points, or 0.01%, to 49,700.29, the S&P 500 lost 40.25 points, or 0.54%, to 7,372.82 and the Nasdaq Composite lost 360.64 points, or 1.37%, to 25,913.48.

Of the 11 major sectors in the S&P 500, tech suffered the largest percentage loss, while healthcare led the gainers.

Humana advanced 5.4% following Bernstein’s 36% price target hike.

GameStop dipped 1.3% following eBay’s rejection of the meme stock trailblazer’s $56 billion takeover bid.

Zebra Technologies jumped 14.4% after the barcode scanner maker raised its annual sales growth forecast, betting on robust demand for its products that help automate manufacturing workflows.

Hims & Hers Health tumbled 12.5% after the ⁠telehealth firm missed Wall Street estimates for first-quarter revenue and posted a surprise loss.