The dollar fell and major U.S. stock indexes rose on Tuesday on news that U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets.

The U.S. stock markets opened mixed due to varied investor reactions to the latest inflation figures and their potential influence on monetary policy. While inflation showed a moderate rise in April,

US stocks surged to close near the highs of the session on Monday after a US-China deal to temporarily slash reciprocal tariffs offered relief to markets worried about a trade war. Wall Street notched a banner day after the US and China put tariffs on pause for 90 days,

After a thaw in U.S.-China trade relations, the market’s focus has turned to price pressures and U.S. stock futures moved lower.

The S&P 500 and the Nasdaq closed higher on Tuesday for a second straight day after softer-than-expected inflation numbers added to investor optimism from Monday when the U.S. and China announced a trade truce.

US stock futures paused their rally as investors focused on a key inflation report and lingering economic concerns, even after the trade truce between the US and China.

Stocks rallied again Tuesday on easing inflation and tariff relief, pushing the S&P 500 into positive for 2025

Consumer Price Index: +0.2% vs. +0.3% consensus and -0.1% prior, according to data released by the Bureau of Labor Statistics on Tuesday.

The rally in stock futures began following high-level trade discussions in Switzerland, which US officials described as 'productive.' Dow Jones Industrial Average (YM=F) futures rose by over 400 points,

Markets this week face inflation data, retail sales, Powell’s speech, and key earnings—setting the tone for trading and rate expectations.

The dollar stayed under pressure after Trump repeated his call for interest-rate cuts following Tuesday’s lower-than-expected U.S. inflation data.