FX.co ★ US Stocks Fall from Records

US equities retreated from record highs on Tuesday after a hotter-than-expected April CPI report deepened concerns that rising energy costs could weigh on corporate earnings. The Nasdaq fell more than 1%, while the S&P 500 and Dow both declined about 0.5%. Headline inflation accelerated to a three-year high of 3.8%, exceeding forecasts and reinforcing expectations that the Federal Reserve is unlikely to cut interest rates this year, amid the risk of an inflationary shock and ongoing signs of labor-market strength. Major AI hyperscalers and leading chipmakers lost ground, pausing their strong gains earlier in the month, with Tesla, Nvidia, Amazon, and Alphabet all down more than 1%. Semiconductor and memory stocks also weakened after South Korea signaled it may introduce a universal dividend framework following the recent rally in AI infrastructure names, putting additional pressure on Broadcom and AMD, which slipped around 2%. Separately, telehealth provider Hims & Hers tumbled 15% after its first-quarter earnings fell short of expectations.