U.S.-China Trade Truce Boosts Stocks as Inflation Wobbles

Global markets surged on Tuesday following new data showing U.S. inflation increased less than anticipated in April. The information came as President Donald Trump unveiled tariffs causing upheaval in markets, but the announcement of a 90-day truce in the U.S.-China trade war reenergized investors.

Oil prices also benefited, climbing after the temporary tariff cut between the U.S. and China. This easing of trade tensions prompted a rise in the S&P 500 and Nasdaq indexes, although the Dow Jones Industrial Average fell slightly due to UnitedHealth's stock dip.

The agreement to pause the trade war revived confidence in the stock, cryptocurrency, and commodities markets. Meanwhile, economists noted inflation should remain manageable, potentially influencing the Federal Reserve's future monetary policy decisions.

(With inputs from agencies.)