U.S. Stocks Slide Amid Ongoing Conflict with Iran, Oil Prices Swing Widely

U.S. stocks dipped slightly on Tuesday as investors awaited upcoming government data to gauge the Federal Reserve's next interest rate move.

The S&P 500 fell 0.3% for a second modest drop since setting its all-time high on Friday, while the Dow Jones Industrial Average and Nasdaq composite sank by 0.3% and 0.6%, respectively.

Brent crude prices swung wildly, briefly reaching $90 per barrel before falling back to $88.91, up 1.4% from Monday's price. Higher oil prices have fueled inflation concerns, with the average cost for a gallon of regular gasoline now at $4.01, according to AAA.

The U.S. government will release its latest monthly reading on inflation, which economists expect to show a deceleration in inflation rates to 3.4% in July from 3.5% in June. This development could impact the Federal Reserve's decision-making process regarding interest rate hikes.