01:21 PM EST, 01/14/2025 (MT Newswires) -- US equity indexes fell midday Tuesday amid a decline in government bond yields and as investors evaluated a steeper-than-expected monthly drop in producer price inflation.

The tech-heavy Nasdaq slipped 0.4% to 19,015.3, with the S&P 500 down 0.2% to 5,824.4 and the Dow Jones Industrial Average less than 0.1% lower at 42,288.7. Healthcare and communication services led the decliners, while utilities and materials were among the top gainers intraday.

The US Producer Price Index grew 0.2% in December, slower than a 0.4% increase in November and below the 0.4% gain expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI held steady, lagging the 0.3% increase anticipated and a 0.2% advance in the previous month.

PPI accelerated by 3.3% year-over-year in December from a 3% increase in November, while core PPI remained at 3.5% year-over-year.

Most US Treasury yields fell, with the two-year rate down 1.8 basis points to 4.38%, declining from its highest since late July. The 10-year stood little changed at 4.81% after touching an intraday 52-week high reached on Monday. A Bloomberg report said late Monday that President-elect Donald Trump's economic team was discussing a "gradual approach" to tariff increases, soothing frayed nerves concerned about the inflationary impact of the Republican policy.

Higher US yields are weighing on equity valuation, with US large caps excluding the Magnificent-7 group of stocks, now trading back at the levels of the September cut in interest rates, according to a Tuesday note from UBS.

Further, in economic news, Redbook US same-store sales rose by 4% from a year earlier in the week ended Jan. 11, slower than a 6.8% year-over-year increase in the previous week.

Philadelphia Federal Reserve's December nonmanufacturing index was revised up to minus 3.4 from minus six previously reported and six in November, the annual revisions released on Tuesday showed.

Meanwhile, West Texas Intermediate crude oil futures dropped 1.3% to $77.77 a barrel, retreating from its highest level since mid-August.

In company news, Eli Lilly ( LLY ) said Tuesday its Q4 revenue will likely be about $13.5 billion. Analysts polled by FactSet anticipate $13.93 billion. Shares traded 7.1% lower intraday, the worst performer in the S&P 500.

United Rentals ( URI ) has agreed to acquire H&E Equipment Services (HEES) in an all-cash deal worth roughly $4.8 billion, including about $1.4 billion of debt, as the equipment rental company aims to expand its capacity in the US.

Gold futures rose 0.2% to $2,682.50 an ounce, and their silver counterpart climbed 0.3% to $30.39 per ounce.