US Stocks Resume Decline Amid Inflation Concerns

Wall Street stocks retreated on Tuesday as worries about inflation, Federal Reserve interest rate hikes and weakening consumer confidence blocked the market from extending last week's rally.

In the first session in a holiday-shortened week, stocks spent most of the day in the red as investors digested data showing record eurozone inflation amid the impact of the Ukraine war.

And US consumer confidence slipped in May as Americans expressed greater unease about the job market, but remained relatively upbeat even as high inflation bites.

Investors also were rattled by comments on Monday from Federal Reserve Governor Christopher Waller backing several big interest rate hikes, said Oanda's Edward Moya.

"US stocks declined as investors stared at an inflation wall of worry and uncertain Fed tightening path," said Moya. "In the US, it is too early to be confident in saying that the peak of inflation is in place."

The Dow Jones dropped 0.7 percent to end the day at 32,990.

The S&P 500 fell 0.6 percent to 4,132, while the Nasdaq shed 0.4 percent to close at 12,081.

The losses marked a reversal from last week's upswing, which saw the major indices post their first weekly gains in about two months.

This week's economic calendar includes surveys with readings on the manufacturing and services sectors, as well as the May government jobs report. (AFP)