S&P 500, Nasdaq end higher on soft inflation data, trade optimism
The S&P 500 and the Nasdaq closed higher on Tuesday for a second straight day after softer-than-expected inflation numbers added to investor optimism from Monday when the U.S. and China announced a trade truce.
The Dow fell, however, weighted down by a steep slide in UnitedHealth (NYSE:UNH)’s shares after the insurance bellwether suspended its annual forecast and its CEO stepped down.
On the data front, U.S. consumer prices rebounded moderately in April, with headline inflation increasing 0.2% last month after dipping 0.1% in March. Economists polled by Reuters had forecast that the CPI would rise 0.3%.
The CPI climbed 2.3% in the 12 months through April, after advancing 2.4% in the 12-month period until March.
According to preliminary data, the S&P 500 gained 41.04 points, or 0.70%, to end at 5,884.92 points, while the Nasdaq Composite gained 299.50 points, or 1.60%, to 19,007.84. The Dow Jones Industrial Average fell 278.06 points, or 0.66%, to 42,132.04.
Among the S&P 500’s 11 major industry sectors, technology was the biggest gainer during the session while healthcare was the biggest loser.
The S&P 500 and the Nasdaq have recovered losses since April 2 - or "Liberation Day" - when U.S. President Donald Trump announced sweeping reciprocal tariffs.
A 90-day pause announced on April 9 for countries other than China, along with solid earnings reports and a limited U.S.-UK trade agreement last week, helped the S&P 500 and the tech-heavy Nasdaq regain lost ground.
Source : Reuters
