US stocks mostly rose on Tuesday after the latest consumer inflation report revealed easing prices in April amid continued euphoria over the US-China trade truce.
The S&P 500 ( ^GSPC ) rose 0.9%, on pace to close positive for the year after the broad benchmark's 3.3% surge on Monday. The tech-heavy Nasdaq Composite ( ^IXIC ) pushed up 1.6% after entering a new bull market in the prior session.
The Dow Jones Industrial Average ( ^DJI ) slid 0.3%, weighed down by a sharp fall in shares of key component UnitedHealth ( UNH ).
April's Consumer Price Index, released on Tuesday morning, showed the slowest annual rate of inflation since 2021, with no signs of immediate price hikes after the whipsawing of President Trump's tariffs throughout the month.
While the brunt of the tariffs' impact likely won't be seen for some time, bond traders are watching the consumer inflation print for clues to the Federal Reserve's path for interest rates . Markets are pricing in the first 0.25% rate cut in September, compared with previous expectations for June.
Read more: The latest on Trump's tariffs
Major companies are still bracing for a tariff bruising. Honda ( HMC , 7267.T ) on Tuesday became the latest automaker to put out a warning, saying it expects a $3 billion hit to full-year profit from Trump's new auto duties.
Elsewhere in corporates, UnitedHealth suspended its 2025 guidance as its CEO, Andrew Witty, stepped down immediately in a surprise move. It shares sank around 10%, with stocks of other healthcare companies such as Humana ( HUM ) also sliding after UnitedHealth flagged rising costs as a key factor.
LIVE 14 updates