Particle.news
Download on the App Store
9 ARTICLES
·
last wk.

US Inflation Eases as Trade Truce Boosts Markets and Fed Cut Expectations

April's softer-than-expected CPI and a 90-day US-China tariff pause drive market gains, weaken the dollar, and solidify prospects for Federal Reserve rate cuts later this year.

U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 12, 2025. REUTERS/Brendan McDermid/File photo
A man looks at an electronic board displaying sector performances related to Nikkei index outside a brokerage in Tokyo, Japan, May 13, 2025. REUTERS/Kim Kyung-Hoon
Image

Overview

  • The US Consumer Price Index rose 0.2% in April, bringing annual inflation to 2.3%, below economists' expectations of 2.4%.
  • A 90-day US-China trade truce, with major reciprocal tariff cuts, has eased global trade tensions and supported market optimism.
  • The Bloomberg Dollar Spot Index fell 0.5% following the inflation report, while gold climbed 0.5% to $3,254.65 per ounce.
  • Major US equity indices rallied, with the S&P 500 and Nasdaq gaining 0.72% and 1.61%, respectively, on improved investor sentiment.
  • Market traders now anticipate at least two Federal Reserve rate cuts in 2025, with the first expected by September.