Markets Sizzle as Inflation Data and Trade Truce Lift Spirits
The S&P 500 and Nasdaq rose in reaction to new inflation figures and a U.S.-China trade reprieve. U.S. consumer prices increased 0.2% in April and 2.3% on a year-over-year basis. Federal Reserve hints suggested unchanged interest rates until September. UnitedHealth faced challenges, while Coinbase saw gains.
The S&P 500 and Nasdaq surged on Tuesday as investors absorbed new inflation data and assessed the implications of a partial U.S.-China trade resolution. Consumer prices in the U.S. increased by 0.2% in April, marking a moderate rebound following a 0.1% decline in March.
The inflation data showed a year-over-year increase of 2.3%, slightly below the 2.4% predicted by economists. Market observers expect the Federal Reserve to maintain its patient stance on interest rates until potential pricing pressures emerge due to fresh trade policies.
Markets also rode high on news of a trade truce, with the U.S. and China agreeing to reduce tariffs, which eased fears of an impending global economic slowdown. Meanwhile, UnitedHealth faced pressures, while Coinbase capitalized on its forthcoming inclusion in the S&P 500.
(With inputs from agencies.)
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