US stocks slip from record highs as oil jumps

Wall Street markets pulled back Tuesday after setting fresh records earlier in the week, with investors digesting steady US inflation data, mixed bank earnings and a sharp rise in oil prices.

Consumer prices rose 2.7 percent in December, unchanged from the previous month and broadly in line with expectations. The results kept hopes alive for potential Federal Reserve rate cuts later in 2026, but equities gradually lost steam as trading unfolded.

All three major US indices closed lower, led by the Dow, which fell 0.5 percent as JPMorgan Chase slid more than four percent following earnings that disappointed on investment banking. Analysts also raised questions about the lender’s spending plans.

Financial stocks felt additional pressure from President Donald Trump’s recent push to cap credit card interest at 10 percent — one of several unpredictable policy comments that have unsettled investors.

Oil prices surged around three percent after Trump announced sweeping tariffs on countries trading with Iran, fueling expectations of tighter supply and adding to geopolitical jitters already heightened by unrest inside Iran.

Elsewhere, European stocks were flat overall, while Asian markets were mixed. Tokyo hit a fresh record as speculation grew about a snap election under new Prime Minister Sanae Takaichi. Seoul rallied after chipmaker SK hynix unveiled major spending plans linked to AI technology.

Key market moves at 2130 GMT included Brent crude up 2.5 percent to $65.47, WTI up 2.8 percent to $61.15, the Dow down to 49,191.99, and the S&P 500 and Nasdaq also closing modestly lower.