US STOCKS-Oil price, financials hit Dow; techs lift Nasdaq

(Updates to close)

*Oil hits another record high

*Inflation concerns voiced by Fed officials

*Bernanke says market recovery incomplete

*Hewlett-Packard weighs on indexes

By Caroline Valetkevitch

NEW YORK, May 13 (Reuters) - Blue-chip stocks declined on Tuesday as oil rose to another record and underscored concerns about inflation, while the Federal Reserve chairman said financial markets are still troubled.

Crude oil futures came within a whisker of $127 per barrel after Iran said it was mulling production cuts, and several Federal Reserve officials highlighted the growing threat of inflation in speeches throughout the session.

Fed Chairman Ben Bernanke also said strong demand from financial institutions to borrow from the Fed showed "markets are still far from normal." Shares of financial companies led declines in the S&P 500 index, with JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) down 3.7 percent at $45.48.