Good morning. U.S. stocks rose on Tuesday after April’s inflation reading came in cooler than expected, helping reinforce the recent rebound in equities and lifting investor confidence that the Federal Reserve could still cut rates later this year. The S&P 500 is now flat year-to-date and just 4% off its all-time high.

Tariff policy remains in flux, but a 90-day pause on U.S.-China import duties continues to provide room for optimism. Growth-oriented sectors outperformed, while health care lagged due to a leadership change at UnitedHealth. Meanwhile, trade talks with China continue behind the scenes, and Fed officials have started to reenter the public circuit with cautiously optimistic remarks.

Why the “MAGA Economy” Is Thriving
The Economist examines the surprising strength of the U.S. economy amid political volatility, noting that low unemployment, steady GDP growth, and strong household balance sheets are supporting demand even as tariffs increase uncertainty.
Read Full Story

China Shipments Stay Strong Amid Trade Wrangling
WSJ highlights that Chinese export activity in April remained resilient despite the U.S. tariff regime. Some firms have rerouted shipments or absorbed costs to maintain global market share.
Read Full Story

Markets Climb Out of Early-Year Hole
MarketWatch reports that the S&P 500 and Dow have erased their 2025 losses and are on track for a rare comeback year. Historical data suggests rallies off deep lows often carry further.
Read Full Story

S&P Breaks 200-Day Line – What’s Next?
MarketWatch looks at technical trends after the S&P 500 rose above its 200-day moving average. Historical patterns suggest strong forward returns, but much depends on the macro backdrop.
Read Full Story

What Goldman Sachs Says to Do Now
MarketWatch summarizes Goldman Sachs’ latest investor guidance, which recommends a mix of defensives and tech, expecting moderate earnings growth and persistent volatility.
Read Full Story

U.S.-China Relations Enter New Phase
CNBC’s special report on “The China Connection” reviews how recent diplomatic and trade policy shifts are reshaping the U.S.-China economic relationship in 2025.
Read Full Story

Chasing the Rally Gets Tougher from Here
Bloomberg explores the challenges facing investors who joined the market rally late, citing valuation pressures and thinning breadth. Still, a soft landing scenario remains on the table.
Read Full Story

U.S. equity markets closed mostly higher on Tuesday, buoyed by a cooler-than-expected April inflation report. The S&P 500 rose 0.7%, while the Nasdaq and Dow posted modest gains. Growth sectors like technology and consumer discretionary led the way, while health care and consumer staples lagged. Bond yields finished higher, with the 10-year Treasury closing near 4.48%.

CPI data showed headline inflation rising 0.2% in April and 2.3% year-over-year, while core inflation rose 0.2% month-over-month and 2.8% on the year. Importantly, the three-month annualized core CPI came in at 2.1%, its lowest level since July 2024. While tariffs have yet to show up meaningfully in price data, future months could see more pronounced effects. For now, markets are pricing in two rate cuts by year-end.

With inflation easing and tariffs temporarily paused, the market is enjoying a breather from macro pressure. But whether these trends hold will depend on the durability of the U.S.-China tariff truce, clarity from the Fed, and continued resilience in earnings. Watch for further rotation into growth sectors and stay nimble as headline risk remains elevated.