S&P 500 dips on inflation and oil concerns but traders expect a rebound Wednesday.

The S&P 500 fell 0.16% to 7,400.96 on Tuesday due to rising oil prices and inflation worries, despite hitting record highs earlier in the week. Traders on Polymarket predict an 83% chance the index will open higher on Wednesday, as investors await April's producer price index data and monitor ongoing geopolitical tensions. Strong earnings and AI spending remain key supports for the market, while energy prices and Middle East tensions pose risks to inflation and consumer pressure. Major companies like Cisco, Birkenstock, and Alibaba are set to report earnings Wednesday.