The market rally takes a breather. Here are 3 reasons why — and 1 silver lining

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets are pulling back on Tuesday from record highs, with stocks tied to artificial intelligence buildout down the most. The tech-heavy Nasdaq was down 1.5% in afternoon trading, while the S & P 500 was off about 0.6%. Several factors were at play. First was the continued strength in the oil market due to uncertainty over the Iran peace deal. At its highs of the day Tuesday, U.S. oil benchmark WTI crude crossed above $102 per barrel; it settled Monday at $98.07. Another factor was the hot April consumer price index (CPI) report , which made the market worried that the Federal Reserve's next move could be a hike, not a cut. The market now sees a roughly 36% probability of a rate hike by year-end, up from about 24% yesterday, according to the CME FedWatch tool . These probabilities can swing back and forth with every new data point and headline out of the war, so we wouldn't read too much into this just yet. Still, we also wouldn't ignore the signals from the bond market, which is sensitive to inflation expectations. The 10-year Treasury yield climbed to 4.45% and the 30-Year yield crossed above 5%. Rising interest rates are typically negative for high price-to-earnings multiple stocks, explaining why growth-oriented names took a hit. …