The Dow Jones Industrial Average shed 48.18 points, or 0.26 per cent, to 18,587.87, Xinhua news agency reported.
The S&P 500 lost 7.69 points, or 0.35 per cent, to 2,182.46. The Nasdaq Composite Index decreased 23. 52 points, or 0.45 per cent, to 5,238.50.
The US Consumer Price Index (CPI) for all urban consumers was unchanged in July on a seasonally adjusted basis, in line with market estimates, the Labor Department reported on Tuesday.
The index for all items less food and energy rose 0.1 per cent in July, but posted its smallest increase since March.
Meanwhile, privately-owned housing starts in July were at a seasonally adjusted annual rate of 1.211 million units, 2.1 per cent above the revised June estimate, according to the US Commerce Department.
US industrial production increased 0.7 per cent in July, better than expectations of 0.3 per cent, after moving up 0.4 per cent in June, said the Federal Reserve on Tuesday.
Investors were also awaiting the minutes of the Fed’s July policy meeting scheduled for release Wednesday, for more indications on the timing of the next interest rate hike.
US stocks rallied on Monday, with all three major indices setting new closing records for the second time in less than a week.