CNN
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The S&P 500 benchmark stock index hit another milestone in its remarkable march higher from the brink of a bear market in recent weeks: It has now erased all its losses for this year.
US stocks were mixed Tuesday as investors digested cooling inflation data and easing trade tensions between the United States and China. The Dow closed lower by 270 points, or 0.64%. Meanwhile, the broader S&P 500 rose 0.72% and the tech-heavy Nasdaq Composite gained 1.61%.
For the year, the Dow is still down 0.95% and the Nasdaq Composite is down 1.56% this year.
Wall Street got a major boost on Monday after Washington and Beijing brokered an agreement to substantially lower tariffs for 90 days. Stocks rose further on Tuesday as new data from the Bureau of Labor Statistics showed a surprising cooldown in annual inflation ahead of the impact of Trump’s tariffs. Consumer prices in April recorded their lowest annual increase since February 2021.
Stocks have been on a tear for the past month after Trump began to change his tune on tariffs, announcing carve-outs for some tariffs on China and the prospect of inking some trade deals.
“Fears of slowing growth and a recession caused by punitive tariffs drove markets lower in the first week of April, but they’ve rebounded on the heels of a tariff pause and a Chinese trade breakthrough, and now a better-than-expected inflation report removes the last big overhang for the market,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management, in a Tuesday note.
Nvidia (NVDA) surged 5.63% Tuesday after the chip giant announced it would partner with Saudi Arabia on artificial intelligence initiatives.
The Dow was the only index that fell on Tuesday. It was largely weighed down by UnitedHealth Group (UNH), which sank 17.8% after the company suspended its earnings guidance and CEO Andrew Witty said he would step down for personal reasons. The Dow is weighted by share prices, and UnitedHealth has a significant influence on the index’s performance.
