The Dow retreated from Monday's record closing high, weighed down by a 4.2% drop in JPMorgan Chase shares after the bank reported a year-over-year decline in fourth-quarter profits, despite adjusted earnings topping estimates. Broader market trading remained choppy amid growing uncertainty over rising geopolitical tensions and a series of economic proposals from President Donald Trump, including a one-year cap on credit card rates and restrictions on defense company payouts and institutional home purchases.

In economic news, U.S. consumer prices rose in line with forecasts in December, with the Labor Department reporting a 0.3% monthly increase in the CPI. Core prices, excluding food and energy, rose 0.2%, slightly below expectations. The annual inflation rate held steady at 2.7% while core inflation remained unchanged at 2.6%, both matching November's pace.

Airline stocks significant moved downwards, dragging the NYSE Arca Airline Index down by 2%. Software stocks are notably weak, as reflected by the 1.6% loss posted by the Dow Jones U.S. Software Index. Banking stocks were notably weak while energy stocks turned in a strong performance amid a spike by the price of crude oil. Networking and steel stocks also saw some strength on the day.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index surged by 3.1%, while Hong Kong's Hang Seng Index advanced by 0.9%. The major European markets ended the day narrowly mixed. While the German DAX Index crept up by 0.1, the U.K.'s FTSE 100 Index closed just below the unchanged line and the French CAC 40 Index edged down by 0.1%.

In the bond market, treasuries moved back to the upside following the consumer price inflation data. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, dipped 1.6 bps to 4.17%.

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