The dollar fell and major U.S. stock indexes rose on Tuesday on news that U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets. European shares edged higher for a fourth straight session, and global equities (.MIWD00000PUS), opens new tab also gained. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Crude oil prices rose, boosted by a temporary cut in U.S.-China tariffs. Advertisement · Scroll to continue The U.S. and China said on Monday they would pause their trade war for 90 days, bringing down reciprocal duties and removing other measures while they negotiate a more permanent arrangement. The agreement has reignited investor appetite for stocks, cryptocurrencies and commodities and Tuesday's inflation figures helped power that move. The Bureau of Labor Statistics said its consumer price index rose 0.2% in April, bringing the annual increase down to 2.3% from 2.4%. Economists polled by Reuters had forecast a monthly rise of 0.3% and a yearly rise of 2.4%. The report was good news, said Bill Adams, chief economist for Comerica Bank in Dallas, in a note. "Inflation should be manageable for most consumers and businesses in 2025." Advertisement · Scroll to continue
Report This Ad The S&P 500 and the Nasdaq advanced on the softer-than-expected inflation numbers and easing of U.S.-China trade tensions. The S&P 500 (.SPX), opens new tab rose 42.36 points, or 0.72%, to 5,886.55 and the Nasdaq Composite (.IXIC), opens new tab rose 301.74 points, or 1.61%, to 19,010.09. The Dow Jones Industrial Average (.DJI), opens new tab fell 269.67 points, or 0.64%, to 42,140.43, under pressure from UnitedHealth's slide after the company suspended its annual forecast and its CEO stepped down. The dollar pulled back from sharp gains in the prior session on the inflation data. It was last down 0.79% against a basket of currencies. The euro rose up 0.94% at $1.1191. "The report basically indicates that the Fed needs to be very cautious and that the stand that they have taken is probably the right course, for now," said Peter Cardillo, chief market economist at Spartan Capital in New York.
