Stocks retreated as inflationary signals from the latest economic reports overshadowed dovish reassurances from several Federal Reserve officials. Treasuries climbed.

Most major groups in the S&P 500 dropped after a gauge of new U.S. home sales slid by more than forecast as higher prices restrained demand. Separate figures showed that consumer confidence slipped for the first time this year, with inflation concern and elevated unemployment likely curbing improvement in sentiment. Meanwhile, Fed Vice Chair Richard Clarida said price pressures would “prove to be largely transitory.”

His remarks echoed those of Chicago Fed President Charles Evans, the central bank’s Vice Chair for Supervision Randal Quarles and three other Fed officials who this week pushed back against the idea that any rise in inflation would prove lasting. Still, investors have been concerned about how long the central bank can keep stimulative monetary policy in place if economic data continue to show price pressures.

“The data remains ‘volatility,’ and that should be expected as we deal with the pandemic exit and the uncertainties that surround that,” said Dennis DeBusschere, head of portfolio strategy at Evercore ISI.

U.S. central bank officials may be able to begin discussing the appropriate timing of scaling back their bond-buying program at upcoming policy meetings, Clarida also said Tuesday.

Some corporate highlights:

• Amazon.com Inc. was sued by the attorney general for Washington, D.C., who accused it of engaging in anticompetitive practices that have raised prices for consumers.
• Moderna Inc. rallied as its COVID-19 vaccine was found highly effective in 12 to 17 year-old adolescents in a large study, paving the way for regulatory submissions around the world by early June.

Here are some events this week:

• Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.
• CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.
• U.S. initial jobless claims, GDP, durable goods, pending home sales on Thursday.

These are some of the main moves in markets:

Stocks

• The S&P 500 fell 0.2 per cent as of 4 p.m. New York time
• The Nasdaq 100 rose 0.1 per cent
• The Dow Jones Industrial Average fell 0.2 per cent
• The MSCI World index rose 0.2 per cent

Currencies

• The Bloomberg Dollar Spot Index fell 0.1 per cent
• The euro rose 0.2 per cent to US$1.2246
• The British pound was little changed at US$1.4144
• The Japanese yen was little changed at 108.74 per dollar

Bonds

• The yield on 10-year Treasuries declined five basis points to 1.56 per cent
• Germany’s 10-year yield declined three basis points to -0.17 per cent
• Britain’s 10-year yield declined two basis points to 0.79 per cent

Commodities

• West Texas Intermediate crude fell 0.3 per cent to US$66 a barrel
• Gold futures rose 0.9 per cent to US$1,903 an ounce