US Stocks End Lower Amid Micron's Lowered Q4 Tech Revenue Guidance

US equity benchmarks ended lower Tuesday, with technology stocks hit hard by a fourth-quarter tech revenue warning from Micron Technology MU and as government bond yields rose ahead of the July inflation print.

The Dow Jones Industrial Average fell 0.2% to 32,774.41, the Nasdaq Composite was down 1.2% to 12,493.93 and the S&P 500 was lower by 0.4% to 4,122.47. Consumer discretionary and technology were the biggest decliners while the energy sector led the gainers.

The US 10-year yield climbed 1.6 basis points to 2.78%.

West Texas Intermediate fell 0.2% to $90.56 a barrel.

The consensus headline rate for Consumer Price Index, which is due out on Wednesday, is 8.7% annualized, down from 9.1% in June, because of the recent decline in energy prices, according to data compiled by Trading Economics. Core CPI consensus is 6.1% in July versus 5.9% in the previous month as food prices have continued to increase.

The target rate probability the Fed will lift interest rates by 75 basis points at its Sept. 21 policy meeting — the third straight of the same magnitude this year — shot up to 67.5%, according to the CME FedWatch Tool as of late Tuesday afternoon. The probability was 41% a week ago on Aug. 1.

"A cooler-than-expected inflation report will likely tip the scale in the direction of a smaller move, while a hotter-than-expected report will all but solidify forecasts for 75 basis points," Stifel Chief Economist Lindsey Piegza said in a research note Tuesday.

Meanwhile, the National Federation of Independent Business' monthly sentiment index rose to 89.9 in July from 89.5 in June, with declines in six of the 10 components but solid readings for employment and a rebound in the still-negative reading for the economic outlook.

Unit labor costs jumped 10.8% in the second quarter after a 12.7% increase in the first because of a productivity decline and faster growth in compensation in the June quarter. The market expectations in a survey compiled by Bloomberg is for an increase of 9.5%.

In company news, Nielsen NNLSN said it postponed meetings on Tuesday to finalize a preliminary agreement between WindAcre Partnership and a group of private equity firms that intend to acquire the company. Shares of Nielsen surged 21%, the top performer on the S&P 500.

The worst performer on the index was Norwegian Cruise Line Holdings NCLH, down 11%. The company reported a second-quarter adjusted loss per diluted share that narrowed to $1.14 from a $1.93 loss a year ago but still missed the average analyst loss estimate compiled by Capital IQ of $0.83.

Gold was up 0.3% to $1,811.20 per troy ounce, while silver was down 0.5% to $20.51 per ounce.