From Yahoo Finance: 2025-05-13 05:45:00

The S&P 500 and Nasdaq rose for a second day on Tuesday as softer inflation data boosted investor confidence. However, the Dow fell due to a 17.8% drop in UnitedHealth shares. Consumer prices rebounded moderately in April, with CPI climbing 2.3% in the 12 months through April.

Following a U.S.-China trade truce, brokerage firms lowered odds of a U.S. recession. Traders now expect the Fed to hold off on lowering interest rates until September, with two 25-basis-point cuts anticipated by year-end. The easing of trade tensions and inflation readings may impact the Fed’s future decisions.

The Dow fell 0.64% to 42,140.43, while the S&P 500 gained 0.72% to 5,886.55 and the Nasdaq rose 1.61% to 19,010.09. Technology led gains, up 2.25%, while healthcare fell 2.97%. Both the S&P 500 and Nasdaq have recovered losses since April 2, rebounding from Trump’s tariff announcement.

Coinbase Global shares surged nearly 24% after news of its inclusion in the S&P 500 on May 19. With most S&P 500 companies reporting earnings, attention turns to Walmart. This week, Fed officials, including Chair Jerome Powell, are scheduled to speak, impacting market sentiment.

Read more: S&P 500, Nasdaq end higher on soft inflation data, trade optimism