Market Rebound: U.S. Stocks Climb as Inflation Cools and Trade Tensions Ease
U.S. stock indexes rose after data showed U.S. consumer inflation increased less than expected, despite President Trump's tariffs. The U.S. and China paused their trade war, boosting investor confidence. The Bureau of Labor Statistics reported a moderate rise in the consumer price index, soothing inflation concerns and affecting global markets.
Major U.S. stock indexes rallied on Tuesday following a report that showed U.S. consumer inflation rose less than anticipated in April. This comes as a new U.S.-China trade agreement emerges, promising a 90-day halt on new tariffs and a rollback of existing ones, which have destabilized global markets.
Inflation figures were a relief to investors, with the Bureau of Labor Statistics reporting a 0.2% rise in the consumer price index, lower than the 0.3% forecasted by economists. This helped the S&P 500 and the Nasdaq both post gains, while the Dow experienced a slight drop due to specific corporate setbacks.
Trade and inflation dynamics have led to speculation about Federal Reserve rate cuts, as traders adjust their forecasts amid easing U.S.-China tensions. Commodity markets also felt the impact, reflected in climbing crude oil and gold prices, indicating renewed investor activity.
(With inputs from agencies.)
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