US stocks were subdued, trading in a narrow range as investors awaited inflation data that could indicate whether the Federal Reserve will raise interest rates again.

The tech-heavy Nasdaq 100 fell 0.7%, the fifth session in a row, as traders considered the possibility of another rate hike in May. The S&P 500 fell in the final minutes of trading as this year's outperformers weighed on the benchmark, namely mega-cap tech stocks. The policy-sensitive two-year Treasury note yield rose to 4.03%.

Cracks are appearing in 2023's equity advance, as hedge funds and other speculators amass the largest short position since November 2011, when the US sovereign credit rating was downgraded. According to Bank of America data, investors have been selling US stocks across the board for the past two weeks as they prepare for Wednesday's closely watched inflation print.