S&P 500 Rallies on Cooler Inflation and Trade Truce

The S&P 500 climbed 0.7% on Tuesday as slowing inflation and the U.S.-China tariff agreement bolstered risk appetite. While the Dow Jones Industrial Average fell 0.6%, dragged down by UnitedHealth, the Nasdaq Composite jumped 1.6%, led by tech and corporate catalysts.

Inflation Eases but Core Pressures Remain

• Headline CPI: +2.3% year-on-year in April (vs. 2.4% expected; lowest since February 2021)

• Monthly change: +0.2% (vs. +0.3% forecast)

• Core CPI: +2.8% year-on-year; +0.2% month-on-month (below the 0.3% consensus)

Shelter costs accounted for over half of April's rise, while energy, medical care, and household goods also contributed. Markets noted that “there are no signs of tariffs pushing prices yet,” according to Morgan Stanley.

Trade Truce Underpins Sentiment

Just days after agreeing to a 90-day tariff pause—U.S. levies on China cut from 145% to 30%, and China's duties on U.S. goods trimmed from 125% to 10%—investors found renewed confidence. Goldman Sachs followed suit by cutting its U.S. recession odds to 35%.

Corporate Movers

• Boeing (NYSE:BA): +2.3% after reports China lifted its month-long delivery ban on its jets.

• NVIDIA (NASDAQ:NVDA): +6% on news of an 18,000-GPU sale to Saudi firm HUMAIN for a 500 MW data center.

• UnitedHealth (NYSE:UNH): -18% after suspending full-year guidance amid rising medical costs and CEO transition.

• Under Armour (NYSE:UAA): +3% as first-quarter revenue beat forecasts despite a net loss.

• Coinbase (NASDAQ:COIN): +4% ahead of its inclusion in the S&P 500 on May 19.

To see how today's volume and trading activity compare across these names, check out today's most active stocks via the Market Most Active API.

What's Ahead

• Fed commentary: Watch for speeches by Fed officials later this week for clues on rate policy.

• Earnings: Q1 results from sectors sensitive to trade costs and consumer spending will further test market resilience.

• Data: Next up, Producer Price Index and Retail Sales will help gauge whether cooler CPI marks a durable trend.

Investors navigating this environment should balance relief over trade and inflation with vigilance around evolving policy and economic releases.