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The major U.S. stock indexes edged lower on Tuesday as \u200bfresh hostilities in the Middle East pushed oil prices higher, while markets await inflation data due later this \u200cweek.<\/strong><\/p>\n The declines follow a roller-coaster stretch that saw investors rushing to readjust rate-hike expectations after commentary from Federal Reserve Governor Christopher Waller and a stronger-than-expected jobs report.<\/p>\n The truncated week after the Labor Day holiday will be dominated by the Consumer Price Index report due on Friday and the Producer Price Index reading on \u200bThursday.<\/p>\n Some investors have said inflation readings will hold more weight for the Fed\u2019s rate trajectory, given Chair Kevin Warsh\u2019s \u200bfocus on bringing prices down.<\/p>\n Traders now see a 58.4% chance of an increase in interest rates this \u2060month, according to the CME FedWatch tool.<\/p>\n \u201cInvestors should resist treating a rate hike this month as a settled outcome, as the \u200bcase for one continues to rest on an inflation impulse that has been energy-driven and has yet to show convincing evidence of broadening,\u201d \u200bGlenmede strategists wrote.<\/p>\n At 11:35 a.m. ET, the Dow Jones Industrial Average fell 519.16 points, or 0.97%, to 52,895.09, the S&P 500 lost 23.39 points, or 0.30%, to 7,695.21 and the Nasdaq Composite lost 16.97 points, or 0.06%, to 26,490.02.<\/p>\n Nvidia and Microsoft were down 1.68% and 1.39%, respectively \u2014 the biggest laggards \u200bamong the Magnificent Seven stocks \u2014 dragging down both Nasdaq and S&P 500.<\/p>\n Apple fell 1.31% a day before an event at which it \u200bis expected to unveil its latest products under new CEO John Ternus.<\/p>\n WAR RISKS FRONT AND CENTER<\/strong><\/p>\n Now in its seventh month, the U.S.-Iran war has \u200cremained an \u2060overhang on equities. Tensions flared up again in the region, raising the risk of a wider conflict.<\/p>\n Brent crude futures rose 0.77% as Yemen\u2019s Tehran-backed Houthis attacked energy facilities and cities in U.S. ally Saudi Arabia on Tuesday.<\/p>\n Shipping traffic through the Strait of Hormuz slowed, with Iran threatening on Monday to retaliate for any new U.S. attacks.<\/p>\n \u201cThe conflict between the United States and Iran is beginning to look less \u200blike a temporary disruption and more \u200blike a longer-term backdrop for \u2060markets,\u201d said Jeff DerGurahian, chief investment officer at loanDepot.<\/p>\n Energy\u00a0was the best-performing sector on the S&P 500, rising 1.22%, with Marathon Petroleum\u00a0and Occidental Petroleum\u00a0up 1.96% and 1.63%, respectively.<\/p>\n Elevated yields on risk-free \u200bU.S. Treasuries have in recent weeks made it less attractive for investors to take on the \u200badded risk of \u2060buying stocks.<\/p>\n The yield on the benchmark 10-year Treasury note rose 0.22 basis points to 4.7862% on Tuesday.<\/p>\n Crypto stocks fell as bitcoin retreated from the $80,000 level. Coinbase\u00a0fell 1.88% while Strategy\u00a0was down 3.59%.<\/p>\n Chipmakers rose, helped by optimism around AI. Intel\u00a0gained 8.65%, while Qualcomm\u00a0added 4.54% \u2060after the \u200bcompany struck a deal\u00a0with Amazon to develop custom AI chips.<\/p>\n Declining issues outnumbered advancers \u200bby a 1.33-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.<\/p>\n The S&P 500 posted four new 52-week highs and eight new lows while the \u200bNasdaq Composite recorded 38 new highs and 97 new lows.<\/p>\n<\/div>\n