Oil Price Volatility Weighs on US Stocks as Inflation Concerns Linger

US stocks retreated slightly from their records on Tuesday, weighed down by rising oil prices and concerns about inflation.

The S&P 500 fell 0.3% to 7,728.20, its second modest decline since setting an all-time high on Friday, while the Dow Jones Industrial Average dipped 184 points to 53,791.85.

Oil prices continued their volatile behavior, with Brent crude briefly jumping above $90 per barrel before falling back below $87 and eventually settling at $88.91, up 1.4% from Monday.

The US government is set to release its latest monthly inflation reading on Wednesday, which is expected to show a deceleration in inflation rates, but still high at 3.4%, compared to 3.5% in June.