Wall Street Rises as Inflation Slows

The US stock market experienced an upward trend on Tuesday after inflation data revealed a 2.3% April reading instead of the expected 2.4% which reduced concerns about stagflation. The S&P 500 index increased by 0.8% which eliminated its 2025 losses and brought it within 4.1% of its February peak value while the Nasdaq rose 1.6% because of technology sector gains. The Dow dipped 0.4%. The S&P 500 experienced a 20% decline following Trump’s April tariffs before recovering on Monday when a 90-day US-China tariff truce lowered tariffs to 30% and 10%. The inflation data indicated that core prices remained stable at 2.8% while grocery prices decreased by 0.4%. Economists predict that summer will bring price increases because of tariffs yet the pre-tariff stockpiling has delayed these effects. The Federal Reserve maintains a cautious stance regarding tariffs because they believe these trade measures will extend the time needed to reach its 2% target inflation rate. The Harris/Guardian poll revealed that 60% of Americans postponed major purchases while consumer sentiment reached its lowest point in 44 years. Market optimism receives support from Trump’s tariff rollback which includes a UK deal yet businesses remain cautious about rising costs while consumers face economic uncertainty.