From Yahoo Finance: 2025-05-12 22:32:00

The dollar fell as U.S. stock indexes rose on news of lower-than-expected consumer inflation in April amid ongoing trade tensions. European shares and global equities also gained, with crude oil prices rising due to a temporary cut in U.S.-China tariffs. The agreement between the U.S. and China to pause their trade war for 90 days has boosted investor appetite for stocks, cryptocurrencies, and commodities.

The Bureau of Labor Statistics reported a 0.2% rise in the consumer price index for April, bringing the annual increase down to 2.3% from 2.4%. Economists had predicted a 0.3% monthly rise and a 2.4% yearly increase. The softer-than-expected inflation numbers and easing of U.S.-China trade tensions led to gains in the S&P 500 and Nasdaq, while the Dow Jones fell due to UnitedHealth’s issues.

The euro rose 0.94% against the dollar, which fell 0.79% against a basket of currencies after the inflation data release. Markets are now less certain about the need for Federal Reserve rate cuts, with traders reducing expectations from over 100 basis points to 56 basis points for this year. While the 90-day trade pause is a positive development, long-term concerns about tariffs remain.



Read more at Yahoo Finance: US inflation data lifts global equities; dollar falls