The S&P 500 benchmark stock index has erased all its losses for this year, marking a significant recovery from the brink of a bear market in recent weeks. On Tuesday, US stocks showed mixed performance as investors processed cooling inflation data and easing trade tensions between the United States and China. The Dow closed lower by 270 points, or 0.64%, while the broader S&P 500 rose 0.72% and the tech-heavy Nasdaq Composite gained 1.61%. For the year, the Dow is still down 0.95%, and the Nasdaq Composite is down 1.56%. A major boost came on Monday when Washington and Beijing agreed to significantly lower tariffs for 90 days. Stocks advanced further on Tuesday following new data from the Bureau of Labor Statistics, which indicated a surprising cooldown in annual inflation ahead of the impact of Trump’s tariffs. Consumer prices in April recorded their lowest annual increase since February 2021. Stocks have surged over the past month after Trump began to adjust his stance on tariffs, announcing exemptions for some Chinese tariffs and the possibility of trade deals. Chris Zaccarelli, chief investment officer at Northlight Asset Management, noted that fears of slowing growth and a recession caused by punitive tariffs drove markets lower in early April, but they have rebounded due to a tariff pause and a Chinese trade breakthrough. Nvidia (NVDA) surged 5.63% on Tuesday after announcing a partnership with Saudi Arabia on artificial intelligence initiatives.
— new from CNN
