Oil Prices and Geopolitics Weigh on Wall Street as Inflation Reports Loom

Wall Street ended lower on Tuesday as rising oil prices and uncertainty over the Strait of Hormuz weighed on investor sentiment. The Dow Jones Industrial Average fell about 188 points, or 0.35%, to close at 53,787.57.

The S&P 500 declined 0.33% to 7,727.79, while the Nasdaq Composite lost 0.60% to finish at 26,445.00.

Investors turned cautious after hopes of an imminent agreement between the US and Iran faded, even as Pakistan suggested progress was being made toward a broader arrangement.

Markets are now focused on Wednesday's consumer price index (CPI) report and Thursday's producer price index (PPI), which could influence expectations for the Federal Reserve's next policy move.