US stocks opened flat on Tuesday, reflecting a cautious investor mood following a key inflation report and lingering uncertainty over trade negotiations with China.
As of 9:46 a.m. ET, the Dow Jones Industrial Average slipped 166.7 points, or 0.39%, to 42,243.4, while the Nasdaq Composite advanced 111.65 points, or 0.6%, to 18,819.99. The S&P 500 was modestly higher, up 14.67 points, or 0.25%, at 5,858.86.
Inflation cooled for the third straight month in April even after some of President Donald Trump’s tariffs took effect, though economists and many business owners expect inflation will climb in the coming months.
Consumer prices rose 2.3% in April from a year ago, the Labour Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years.
Earlier, Futures markets pointed to a lower open for the Dow and S&P 500, while Nasdaq futures ticked down slightly ahead of the latest US consumer inflation data. The report showed inflation cooling for a third straight month in April, offering some relief but failing to dispel broader concerns that trade tensions and tariff policies could reignite price pressures in the months ahead.
Shares of UnitedHealth Group plunged more than 10% after the health insurance giant suspended its full-year financial forecast, citing a spike in medical costs. The company also announced a leadership change, with CEO Andrew Witty stepping down for personal reasons and Chairman Stephen Hemsley reassuming the CEO role.
Boeing shares, meanwhile, edged up nearly 2% after reports emerged that China had lifted a ban on accepting deliveries of the US aerospace giant’s aircraft. The move is reportedly part of a broader trade truce announced Monday, under which the US agreed to reduce tariffs on Chinese imports to 30% from 145% for a 90-day period, while China cut duties on American goods to 10% from 125%.
The deal followed weekend talks in Geneva, which US officials described as yielding “substantial progress.” Market analyst Stephen Innes of SPI Asset Management noted that while the agreement may be short-term, it still offers a signal that policymakers are aware of the economic drag posed by prolonged trade frictions. “Make no mistake, this was highly stage-managed diplomacy. But the optics are good and the implications real,” he said in a note.
Despite the optimistic tone, analysts urged caution. “The trade deal is not done yet,” said Louis Wong, director at Phillip Securities Group in Hong Kong, warning that unexpected developments could still rattle markets.
Global markets reflected that caution. In Europe, Germany’s DAX and France’s CAC 40 each rose 0.1%, while London’s FTSE 100 remained flat. Asian stocks were more mixed. Japan’s Nikkei 225 gained 1.4%, buoyed by automakers amid a stronger dollar, while Hong Kong’s Hang Seng fell 1.9% after a sharp tech-led rally the previous day. China’s Shanghai Composite edged 0.2% higher.
In commodities, gold rose 0.55% to $3,245.60 an ounce, while US crude oil gained 1.13% to $62.65 per barrel. Brent crude climbed 60 cents to $65.56. Bond yields inched up, with the 10-year US Treasury yield rising to 4.465%. The euro strengthened against the dollar, trading at 1.114.
Volatility eased slightly, with the VIX down 3.48% at 17.75. As markets digest trade developments and company-specific news, investors remain watchful for any signs of sustained economic headwinds or renewed inflationary pressures.
As of 9:46 a.m. ET, the Dow Jones Industrial Average slipped 166.7 points, or 0.39%, to 42,243.4, while the Nasdaq Composite advanced 111.65 points, or 0.6%, to 18,819.99. The S&P 500 was modestly higher, up 14.67 points, or 0.25%, at 5,858.86.
Inflation cooled for the third straight month in April even after some of President Donald Trump’s tariffs took effect, though economists and many business owners expect inflation will climb in the coming months.
Consumer prices rose 2.3% in April from a year ago, the Labour Department said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years.
Earlier, Futures markets pointed to a lower open for the Dow and S&P 500, while Nasdaq futures ticked down slightly ahead of the latest US consumer inflation data. The report showed inflation cooling for a third straight month in April, offering some relief but failing to dispel broader concerns that trade tensions and tariff policies could reignite price pressures in the months ahead.
Shares of UnitedHealth Group plunged more than 10% after the health insurance giant suspended its full-year financial forecast, citing a spike in medical costs. The company also announced a leadership change, with CEO Andrew Witty stepping down for personal reasons and Chairman Stephen Hemsley reassuming the CEO role.
Boeing shares, meanwhile, edged up nearly 2% after reports emerged that China had lifted a ban on accepting deliveries of the US aerospace giant’s aircraft. The move is reportedly part of a broader trade truce announced Monday, under which the US agreed to reduce tariffs on Chinese imports to 30% from 145% for a 90-day period, while China cut duties on American goods to 10% from 125%.
The deal followed weekend talks in Geneva, which US officials described as yielding “substantial progress.” Market analyst Stephen Innes of SPI Asset Management noted that while the agreement may be short-term, it still offers a signal that policymakers are aware of the economic drag posed by prolonged trade frictions. “Make no mistake, this was highly stage-managed diplomacy. But the optics are good and the implications real,” he said in a note.
Despite the optimistic tone, analysts urged caution. “The trade deal is not done yet,” said Louis Wong, director at Phillip Securities Group in Hong Kong, warning that unexpected developments could still rattle markets.
Global markets reflected that caution. In Europe, Germany’s DAX and France’s CAC 40 each rose 0.1%, while London’s FTSE 100 remained flat. Asian stocks were more mixed. Japan’s Nikkei 225 gained 1.4%, buoyed by automakers amid a stronger dollar, while Hong Kong’s Hang Seng fell 1.9% after a sharp tech-led rally the previous day. China’s Shanghai Composite edged 0.2% higher.
In commodities, gold rose 0.55% to $3,245.60 an ounce, while US crude oil gained 1.13% to $62.65 per barrel. Brent crude climbed 60 cents to $65.56. Bond yields inched up, with the 10-year US Treasury yield rising to 4.465%. The euro strengthened against the dollar, trading at 1.114.
Volatility eased slightly, with the VIX down 3.48% at 17.75. As markets digest trade developments and company-specific news, investors remain watchful for any signs of sustained economic headwinds or renewed inflationary pressures.
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