U.S. stocks slipped for a second consecutive session as investors turned cautious ahead of Wednesday’s key inflation report. The major indexes edged lower, while oil prices rose amid uncertainty over the Federal Reserve’s next moves, the U.S.-Iran standoff, and debate over the AI build-out. Many investors are proceeding with caution.

“It’s kind of like the ‘Enter Sandman’ market—sleep with one eye open, hold your pillow tight,” said Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management. All eyes are on July’s inflation report, with economists expecting consumer prices up 3.4% year-over-year, a slight improvement from June’s 3.5%. Corporate earnings have exceeded expectations to record levels.

The S&P 500, which hit a record last week, fell 0.3% for its second straight drop. The Dow declined 0.3%, or 184 points.