U.S. stocks decline after June inflation rate rose to 2.7%, but Nasdaq sets a new record.

U.S. stocks mostly fell on Tuesday after inflation data showed a 2.7% increase in June, up from 2.4% in May, dampening hopes for lower interest rates. The S&P 500 and Nasdaq Composite remained near record highs, with the Nasdaq setting a new record, thanks to Nvidia's 4.4% gain. The Dow Jones Industrial Average dropped 0.6%. Treasury yields rose, with the 10-year yield climbing to 4.47%. Despite the inflation rise, traders still expect a rate cut by the Fed by year-end, though the number of expected cuts has been reduced.