The S&P 500 hovered near the flatline on Tuesday, while the Nasdaq added 0.2% and the Dow Jones fell by around 150 points, as initial enthusiasm from the US-China 90-day tariff truce faded and investors digested a fresh set of economic data.
US stocks mixed on Tuesday
April's Consumer Price Index (CPI) report showed inflation came in softer than expected, suggesting that the broader impact of tariffs on consumer prices has yet to fully materialize. The moderation in inflation reignited hopes for more accommodative monetary policy, with traders increasing bets on roughly 55 basis points of Federal Reserve rate cuts by the end of the year. Sector-wise, consumer discretionary and technology stocks led gains, buoyed by easing rate fears and resilient consumer demand, while healthcare shares lagged significantly.
UnitedHealth major drag on the sector
UnitedHealth was a major drag on the sector, plunging nearly 13% to a four-year low near $330 after its CEO unexpectedly stepped down and the company withdrew its financial outlook, citing market uncertainties and regulatory pressures. The move fueled broader concerns over the sector's earnings visibility and policy risks heading into the second half of the year.
