Wall Street Rally Loses Steam as Iran Tensions Reignite Inflation Fears Ahead of CPI Data - Tekedia

U.S. stocks eased after Iran rejected a peace proposal, reviving fears of a wider conflict around the Strait of Hormuz.

Brent crude rose on the geopolitical risk, adding to worries that higher energy costs could reignite inflation.

The market’s AI and semiconductor-driven rally stayed intact for now, but momentum faded from the S&P 500 and Nasdaq highs.

Investors are now focused on upcoming U.S. CPI and other data to gauge whether inflation is reaccelerating and what that means for Fed policy.