By Yasin Ebrahim

Investing.com — The S&P 500 cut gains Tuesday, as the intraday run-up in tech faded even as Treasury yields slipped following data suggesting the pace of red-hot inflation could be nearing a peak.

They fell 0.3% and 0.24% respectively, or 84 points. The slipped by 0.28%.

The , or CPI, climbed to 8.5% in the 12 months through March, above economists’ forecasts of 8.4%, but it was the core CPI, which excludes food and energy, that dominated attention.

The core CPI rose 0.3% in March, missing economists’ forecast for a rise of 0.5%, led by a “larger-than-expected decline in core goods prices alongside a surprising miss in rents,” Morgan Stanley said in a note.

Some on Wall Street aren’t getting carried away, warning that there is still a long way to go for inflation to return to the Federal Reserve’s 2% target.

“[W]hile today’s report is encouraging, the Fed is a long way away from claiming victory and will have to remain in inflation-fighting mode,” Jefferies said in a note.

The U.S. Treasury yields were able to take a break after the data. This briefly helped tech and other growth markets catch up.

In the aftermath of rising oil prices, the largest gainer was energy stocks as global demand concerns eased following Shanghai’s Covid-19 restrictions.

Marathon Oil (NYSE:), Devon Energy The gains were led by Diamondback Energy (NASDAQ) and (NYSE:).  

Rising restaurant stocks have helped consumer discretionary stock after Citi highlighted Chipotle Mexican Grill, Darden Restaurants and Texas Roadhouse (NASDAQ:) Opportunities with the greatest upside, which can weather the decline in reopening and the effects of labour shortages.

CarMax (NYSE) dropped 8% following mixed quarterly results. Earnings were lower than expected due to declining volumes and earnings.

JPMorgan (NYSE) quarterly results were better than bank stocks. This was due to falling Treasury yields, which lowered investor sentiment.

In other news, PG&E (NYSE:) rose 3% after it agreed to pay a $55 million settlement over two fires in Northern California.