US stocks slip after rallying last week as rising oil prices renew inflation fears

• US stocks inched lower Tuesday following the Memorial Day weekend and last week's rally.
• Oil surged to a two-month high of $123 as the European Union announced a partial Russian oil embargo.

US stocks were lower on Tuesday, losing steam after last week's rally as rising oil prices stoked renewed inflation fears among investors.

Oil surged to a two-month high of $123 Tuesday after the European Union agreed to ban most Russian crude and China eased up on its COVID restrictions.

The jump comes as US gas prices hit fresh highs, with a growing list of states paying over $5 for a gallon of gas. The national average on Tuesday was $4.622.

Here's where US indexes stood as the market opened 9:30 a.m. on Tuesday:

• S&P 500: 4,143.25, down 0.36%

• Dow Jones Industrial Average: 32,987.17, down 0.68% ( 225.79 points )

• Nasdaq Composite: 12,128.98, down 0.02%

Tesla short sellers have made $8.2 billion betting against Elon Musk's company this year amid the tech sell-off. More broadly, short sellers have made $63 billion betting against Nasdaq 100 companies.

The ongoing selloff won't end soon, "Shark Tank" investor Robert Jerjavec warned. He forecasted that stocks could plunge another 30%, and added that the market is gripped by fear and doubt.

Meanwhile, the IEA chief sounded the alarm on summer fuel shortages, and that a triple energy crisis of oil, gas, and electricity simultaneously could outstrip the oil shocks of the 1970s.

In crypto, Terra revived the failed luna token following its major meltdown — but it fell sharply after its launch.

Overseas, yuan-ruble trading has surged more than 1,000% as China and Russia draw closer to counter the US. The jump in trading between the two currencies is a sign that the nations are looking to strengthen their ties as they look to limit the power of the US.

Oil moved higher, with West Texas Intermediate up 2.97% to $118.49 a barrel. Brent crude, the international benchmark, moved up 1.46% to $123.45 a barrel.

Gold edged lower 0.31% to 1,845.60 per ounce. The 10-year Treasury yield rose 9.3 basis points to 2.842%.

Bitcoin climbed 3.29% to $31.683.70.