LIVE MARKETS-US stocks lower midday, with Nasdaq, tech leading declines

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US STOCKS LOWER MIDDAY, WITH NASDAQ, TECH LEADING DECLINES

Major U.S. stock indexes are lower in midday trading on Tuesday, with Nasdaq .IXIC falling more than 1% and leading the way down following the morning's hotter-than-expected U.S. consumer price index report.

The S&P 500 technology sector .SPLRCT is leading declines among S&P 500 .SPX sectors. The sector is down more than 2%, while the consumer discretionary sector .SPLRCD is falling more than 1%.

The report strengthened some economists' expectations that the Federal Reserve would keep interest rates unchanged into 2027.

It showed U.S. consumer prices increased at a brisk pace for a second straight month in April as the U.S.-Israeli war with Iran pushed up energy costs and food prices surged. The CPI increased 0.6% last month after surging 0.9% in March.

Also worrying investors are dwindling hopes for a U.S.-Iran peace agreement. Tehran has rejected a U.S. proposal to end the conflict and stuck to a list of demands the U.S. president described as "garbage."

Here is a market midday snapshot:

(Caroline Valetkevitch)

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