US Stocks Show Mixed Gains as Softer April Inflation Data Emerges

US stock markets displayed a mixed yet upward-leaning performance on Tuesday, May 13, 2025, following the release of softer-than-anticipated US Consumer Price Index (CPI) data for April, which highlighted a slower rise in consumer prices. The Dow Jones Industrial Average slipped to 42,256 points, shedding approximately 150 points or 0.4%, while the S&P 500 edged up to 5,888 points with a gain of about 44 points or 0.8%. Meanwhile, the Nasdaq, dominated by technology heavyweights, surged to 18,979 points, adding 276 points or 1.5%, reflecting varied sector responses to the economic update released early in the North American session.

The CPI report revealed a modest 0.2% month-over-month increase in April, a rebound from March’s 0.1% drop but below market expectations of 0.3%. On an annual basis, inflation eased to 2.3% from 2.4%, marking the smallest yearly rise since February 2021 and falling short of the anticipated steady rate. Core CPI, excluding volatile food and energy components, also rose by 0.2% monthly, up from 0.1% in the prior month, and held firm at 2.8% year-over-year, aligning with both previous readings and forecasts. This cooling in price pressures has sparked discussions about potential shifts in Federal Reserve policy, influencing market sentiment as the trading day unfolded.

The US Dollar Index (DXY), which tracks the Dollar’s strength against six major currencies, fluctuated between a daily high of 100.76 and a low of 101.28, closing at 101.29. The Dollar’s softening, driven by the underwhelming inflation data, provided a lift to risk assets, particularly in the tech-heavy Nasdaq, which benefited from renewed investor confidence. The S&P 500’s modest gain suggests a broader market stabilization, while the Dow’s decline hints at selective profit-taking amid the mixed economic signals. This divergence underscores the market’s nuanced reaction to the data, balancing inflationary relief with ongoing uncertainties tied to trade and monetary policy.

Looking ahead, the softer inflation figures could pave the way for a more accommodative Fed stance, though expectations remain tempered as investors await further economic indicators, including Wednesday’s NFIB Business Optimism Index and API crude inventory report. The tech sector’s strong performance indicates resilience, potentially fueled by the recent US-China 90-day tariff suspension, which has eased trade tensions and supported risk-on sentiment. As markets digest these developments at 03:23 AM +04 on Wednesday, May 14, 2025, the interplay of inflation trends and global trade dynamics will likely shape the next moves for US equities.