U.S. stocks ended mostly lower Tuesday as investors digested hotter-than-expected inflation data and a mixed batch of bank earnings, with cautious positioning ahead of Netflix’s quarterly report later this week.

The Dow Jones Industrial Average lost 436.76 points, or 0.98%, to close at 44,022.93. The S&P 500 dropped 24.88 points, or 0.40%, to 6,243.68. The Nasdaq Composite bucked the trend, rising 37.47 points, or 0.18%, to 20,677.78, supported by strength in select technology shares.

The June Consumer Price Index rose 0.3% on a seasonally adjusted basis, accelerating from May’s 0.1% increase, the U.S. Bureau of Labor Statistics reported. On a year-over-year basis, inflation reached 2.7%, up from 2.4% in May. The uptick was driven by a 0.9% jump in energy prices—gasoline alone rose 1.0%—and a 0.2% rise in shelter costs, the largest monthly contributor. Core CPI, which excludes food and energy, climbed 0.2% in June and 2.9% over the past 12 months.

The inflation reading rattled markets, dampening hopes for early interest rate cuts from the Federal Reserve and fueling profit-taking across economically sensitive sectors.

Bank earnings also added to investor caution. JPMorgan Chase reported adjusted Q2 earnings of $4.96 per share, beating the $4.47 consensus. Net income totaled $15 billion, supported by 2% year-over-year growth in net interest income (NII) to $23.3 billion. Trading and investment banking posted solid results, with Markets revenue up 15% and investment banking fees rising 7%.

However, despite the beat, JPMorgan shares slipped as investors took profits following a strong pre-earnings run-up. CEO Jamie Dimon cited ongoing macro risks, including tariffs, geopolitical tensions, and asset valuations, as key concerns. The bank lifted full-year NII guidance to $95.5 billion but kept expense forecasts steady.

Wells Fargo also surpassed expectations, posting Q2 earnings of $1.60 per share against estimates of $1.41, with net income of $5.49 billion. Revenue rose 0.6% year-over-year to $20.82 billion. Still, the stock declined 3.3% as the bank trimmed its full-year NII forecast, now projecting flat 2025 growth compared to $47.7 billion in 2024. CEO Charlie Scharf flagged macro uncertainties and client caution tied to tariffs and rates.

While credit quality remained solid and capital returns were strong—including a 12.5% dividend hike—soft performance in the Markets segment and margin pressure weighed on sentiment.

Crude oil futures settled at $66.68 a barrel, down $0.30 or 0.45%, while gold fell $23.30 to $3,335.80 per ounce. The Russell 2000 index of small-cap stocks dropped 1.95%, closing at 218.84, underlining investor risk aversion.

Looking ahead, Netflix is set to report second-quarter results Thursday after the close, with Wall Street anticipating $11.05 billion in revenue and EPS of $7.07. The focus is on advertising momentum, operating margins, and international growth. While the stock is up 45% year-to-date, some analysts warn of a possible “sell-the-news” reaction if the company fails to meaningfully raise guidance