Early Tuesday, the latest Consumer Price Index (CPI) report showed inflation pressures eased on an annual basis in April hitting their lowest level in more than four years.

Economists largely argued the report doesn't change much for the Federal Reserve's wait-and-see approach toward monetary policy as the central bank awaits more incoming data. President Trump disagrees.

"No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!!," Trump wrote on Truth Social Tuesday afternoon. "THE FED must lower the RATE, like Europe and China have done. What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!"

Wall Street strategists are once again growing more bullish on the outlook for the S&P 500 (^GSPC) this year as a 90-day truce between the US and China on tariffs has sparked a market rally.

On Monday night, Goldman Sachs raised its year-end target for the S&P 500 to 6,100 from a prior forecast of 5,900. Meanwhile, Yardeni Research boosted its year-end projection to 6,500, up from a previous call for 6,000. Yardeni's more bullish target of 6,500 reflects a roughly 11% additional gain from current levels for the benchmark index. Both firms mentioned diminishing fears of a major growth slowdown as a key reason stocks will continue to move higher.

"We raise our S&P 500 return and earnings forecasts to incorporate lower tariff rates, better economic growth, and less recession risk than we previously expected," Goldman Sachs chief US equity strategist David Kostin wrote in a note to clients.

"Among our main concerns about Trump's Tariff Turmoil was that the drop in stock prices would have a significant negative wealth effect on consumers," Yardeni Research president Ed Yardeni wrote. "After [Monday's] stock market rally, the negative wealth effect is probably insignificant."

Read more here.

Boeing (BA) shares hit 52-week highs on Tuesday as the plane maker is poised to benefit from President Trump's tariff negotiations.

China is now allowing airlines to take delivery of Boeing planes after the United States and China agreed to temporarily reduce tariffs, according to a Bloomberg report.

The report came after the US announced a tariff breakthrough with China, one of its largest trading partners. Last month, Boeing said customers in China would not take delivery of new planes due to the US tariff policy unveiled in April, which included 145% duties on Chinese imports.

Also on Tuesday, Boeing said AviLease, a firm owned by Saudi Arabia's sovereign wealth fund, placed an order for up to 30 Boeing 737 Max jets.

Boeing shares are up more than 18% year to-date.

Yahoo Finance's Jennifer Schonberger reports:

Read more here.

The S&P 500 (^GSPC) rose 0.8% on Tuesday, turning positive for the year after erasing all of its losses as a global tariff war appeared to ease.

As of 10:20 a.m. ET, the broad-based index was up 0.1% since the start of 2025 in a stunning rally from its April 9 lows.

The S&P 500 dropped sharply in the days following President Trump's tariff policy on April 2, "Liberation Day." It has clawed back those losses amid tariff pauses, a deal with the UK, and a trade breakthrough with China.

On Tuesday, the S&P 500 was looking to add to Monday's gain of nearly 3.3% after the US struck an agreement with China, pausing some tariffs against Chinese imports, with both sides agreeing to significantly reduce their duties.

Meanwhile, the Nasdaq Composite (^IXIC) and the Nasdaq 100 (^NDX) entered a new bull market on Monday, up 20% from their April lows.

UnitedHealth (UNH) stock dropped more than 12% on Tuesday morning, dragging on the Dow Jones Industrial Average (^DJI) and other healthcare stocks.

The healthcare provider suspended its 2025 forecast just weeks after cutting its outlook, citing increased costs.

The company also announced CEO Andrew Witty would step down immediately for "personal reasons."

Shares are down 34% year to date. The stock, a heavyweight component on the Dow, was causing the blue chip index to drop on Tuesday.

Other healthcare names were also down on Tuesday, including Humana (HUM) and CVS (CVS).

Read more here.

Stocks were mixed on Tuesday after the latest Consumer Price Index report showed inflation pressures eased in the month that many of President Trump's tariffs were unveiled.

The Dow Jones Industrial Average (^DJI) slid 0.4%, dragged by a sharp drop in shares of UnitedHealth (UNH) due to a CEO change and guidance withdrawal.

Meanwhile, S&P 500 (^GSPC) opened just above the flat line, after the broad benchmark surged almost 3.3% on Monday as investors celebrated the tariff reduction deal. The tech-heavy Nasdaq Composite (NQ=F) pushed up 0.2%.

The Trump administration's tariff policy revealed last month appeared to have no immediate impact on April's monthly inflation print released before the bell. The Bureau of Labor Statistics' Consumer Price Index showed the slowest annual rate of inflation since 2021.

Nvidia was set to rejoin the $3 trillion club Tuesday.

The stock gained 5.4% to start the week, putting its market capitalization nose hairs behind $3 trillion — the AI chipmaker's value was $2.9997 trillion as of Monday’s close, to be exact, according to Bloomberg data.

That gain was part of a larger surge in the so-called "Magnificent Seven" Big Tech stocks after the Trump administration temporarily slashed tariffs on Chinese imports to 30% from as high as 145% for 90 days, signaling a deescalation in the mounting US-China trade war.

Nvidia shares jumped an additional 1.5% premarket Tuesday, putting the company on track to close above the $3 trillion mark for the first time since Feb. 28.

Read the full story here.

April's Consumer Price Index (CPI) report showed inflation pressures eased in the first month that many of President Trump's tariffs were in effect.

The latest data from the Bureau of Labor Statistics showed that consumer prices increased 2.3% over the prior year in April, a slowdown from March's 2.4% and below economists' forecast for 2.4%. This marked the lowest annual increase since February 2021, before a large increase in inflation sparked a Federal Reserve interest rate hiking cycle.

On a month-over-month basis, prices increased 0.2%, above the 0.1% decrease seen in March but lower than the 0.3% estimated by economists.

On a "core" basis, which strips out the more volatile costs of food and gas, prices in April climbed 0.2% over the prior month, ahead of March's 0.1% rise but below consensus projections for a 0.3% increase. Over the last year, core prices rose 2.8%, unchanged from the prior month and in line with Wall Street's expectations.

The CPI report greets investors less than 24 hours after markets soared on news that the US and China have placed a 90-day pause on a wide swath of tariffs between the two countries.

Read more here.

After yesterday's US-China tariff pause, tech stocks lurched higher once again, adding to an uneven post-"Liberation Day" rally that has stood out in markets.

This morning, the Big Tech names were mixed in premarket trading. Tesla (TSLA), which rose over 6% yesterday, is up only 0.3%. Apple (AAPL), which gained by the same amount, is down some.

With the release of the April Consumer Price Index this morning, investors will find out whether tariffs continue to be the only narrative that matters right now.

As my colleague Josh Schafer pointed out in today's Chart of the Day, some strategists don't see that changing:

Here are some stocks making moves on Tuesday morning, two hours ahead of the opening bell. You can find more movers on our trending tickers page.

UnitedHealth (HMC): The healthcare provider suspended its 2025 forecast just weeks after cutting its outlook, citing increased costs. It also said its CEO Andrew Whitty would step down immediately. Its shares sank over 10%, dragging on other healthcare stocks including Humana (HUM) and CVS (CVS).

Coinbase (COIN): Shares in the crypto exchange provider surged over 9% on news it will join the S&P 500 on May 19, a landmark for the industry. Coinbase will replace Discover Financial Services (DFS) on the broad benchmark.

Hertz (HTZ): The rental car company's stock dropped nearly 7% in the wake of a deeper-than-expected first quarter loss. Hertz also flagged weaker demand amid a broader downbeat forecasts for US tourism.

Honda (HMC): The Japanese auto giant said it expects a $3 billion hit to annual profit due to US tariffs on cars and car part imports. Its US-listed shares fell 4%.

Goldman Sachs (GS) strategists say the outlook for US equities is brightening as US-China trade tensions ease, but caution that prices may be overly optimistic due to ongoing uncertainties.

Bloomberg News reports:

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This report is always a fun one to dissect.

The latest Bank of America fund manager survey was done just before the new US-China trade deal. But it still offers a valuable snapshot into investor thinking.

Fund managers were positioned defensively enough that the "pain trade" could continue in the near term. That essentially means investors were underweight risk assets (or owned less of them), and may now be forced to chase stocks higher due to a sliver of good trade news.

Meanwhile, I thought the below chart was interesting, as Goldman Sachs lowered its US recession probability to 35% from 45% late Monday.

Chinese stocks struggled on Tuesday as optimism over the US-China rollback of tariffs was clouded by worries that Beijing will now pull back on measures to stimulate the economy.

The Hang Seng China Enterprises Index (^HSCE) in Hong Kong ended 2% lower, coming off the prior day's 3% relief rally. Shanghai's onshore benchmark CSI 300 Index (000300.SS) closed 0.2% higher.

Bloomberg reports:

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Gold (GC=F) maintains its loss as the easing of US-China trade tensions has pushed investors out of the safe-haven and into riskier assets.

Bloomberg reports:

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