US500 surges on soft cpi & trade deal hopes

• US500 rises on easing headwinds
• US CPI data comes in softer than expected
• Temporary US-China trade deal boosts sentiment
• Easing inflation lifts investor confidence

The US500 grew beyond 6 890 on Tuesday, buoyed by a softer-than-expected US CPI report and fresh optimism following a newly agreed temporary trade deal between the US and China.

Headline CPI rose 0.2% MoM in April, while core CPI matched the same pace – both below MoM consensus estimates of 0.3%.

Sentiment was further supported by news of a temporary trade agreement between Washington and Beijing aimed at reducing near-term tensions.

The deal, while limited in scope, signals a cooperative turn in US-China relations – a welcome development for global markets grappling with geopolitical uncertainty.

The combination of moderating inflation and easing trade risk ignited broad-based buying across the S&P 500.

With disinflation trends holding and external headwinds softening, the US500 may appear well-positioned to potentially build on recent momentum as investors look ahead to further economic data and Fed commentary.