Investing.com– U.S. stocks fell Tuesday,  pressured by an Nvidia-led dip in tech and slip in financials ahead of the ahead of the release of key inflation data and the beginning of the quarterly earnings season.

At 13:53 ET (17:53 GMT), fell 140 points, or 0.4%, fell 0.3%, and fell 0.1%.

Nvidia (NASDAQ:) slip weighs on tech, Alphabet (NASDAQ:) jumps

Nvidia fell more than 2% as a slip below a key technical level of $850 appeared to attract more selling pressure just as rival Intel (NASDAQ:) unveiled that its Gaudi 3 chip that the latter said delivers better performance and uses less power.  

Still strong gains in Wolfspeed Inc (NYSE:), GlobalFoundries Inc (NASDAQ:), and AKRM helped keep the chip stocks trending higher with the latter up more than 7% on the day after Needham started coverage on the stock at buy with a $40 price target, saying it was “underappreciated” story amid exposure to artificial intelligence.   

Steeper downside moments in the broader the sector, however, was kept in check by a more than 1% rise in Alphabet as the company unveiled new custom Arm-chips as well as several partnerships for its cloud business ahead of its Google Cloud Next keynote.

CPI inflation, Fed minutes eyed for more clues on rate cuts

The consumer price index inflation data for March due Wednesday is expected to show inflation potentially picking up, though the core measure, which excludes food and energy and is more closely watched by the Fed, is expected to have cooled to a 0.3% pace in March from 0.4% month earlier.  Sticky inflation has been a major point of contention for the Fed in potentially lowering interest rates. A string of officials have warned that high inflation could potentially delay rate cuts this year.

The minutes of the Fed’s March meeting also due on Wednesday will likely provide further clues on the rate path ahead after the central bank guided for 75 basis points of rate cuts this year at this meeting. Traders, however, have been cutting expectations that the Fed will reduce interest rates by as soon as June. The CME Fedwatch tool shows a 54% chance for a 25 basis point cut in June.

Treasury yields traded lower ahead of the data, with the yield on the falling 6 basis points lower at 4.37%.

Boeing in fresh woes, Q1 delivers slide; Lucid rises on Q1 delivers; financials lower ahead of Q1 earnings

Boeing Co (NYSE:) fell more than 1% as the aircraft maker is under investigation from the Federal Aviation Administration after a whistle-blower called out flaws in the company’s 787 Dreamliner, the New York Times reported Tuesday. The whistle blower reportedly told the New York Times that the fuselage of the 787 Dreamliner was prone to breaking apart after after thousands of trips from a fault related to how they were fastened.

The report, which serves as another blow to the company’s reputation, comes just days after an engine cover on a Boeing 737-800 Southwest Airlines (NYSE:) fell off on Sunday, prompting the FAA to launch an investigation into the incident.   

The halts to production amid regulatory probes have weighed on Boeing’s aircraft output as the aircraft maker delivered just 83 commercial airplanes in the first quarter, the lowest quarterly total in nearly three years.

Lucid Group Inc (NASDAQ:) stock, meanwhile, rose over 2% after the EV manufacturer reported first-quarter deliveries above market expectations on Tuesday as price cuts helped boost demand for its luxury electric sedans.

Financials, meanwhile, were also trading below the flatline as banks  including JPMorgan Chase (NYSE:), Citigroup and Wells Fargo prepare to kick off the Q1 earnings season in earnest on Friday.

Delta Air Lines Inc (NYSE:) and BlackRock Inc (NYSE:) are also set to provide quarterly reports this week.
Investors will be watching to see whether Wall Street majors can justify a massive run-up in valuations seen over the past three months.

(Peter Nurse, Ambar Warrick contributed to this article.)