Most US stock indices, except the Dow, rose on Tuesday, led by the tech sector as the trade tensions cooled.
Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March’s 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.
On trading, Dow Jones fell 0.3% as of 15:09 GMT, or 144 points to 42265 points, while S&P 500 rose 0.6%, or 33 points to 5877 points, as NASDAQ rallied 1.1%, or 211 points to 18,912 points.
