S&P 500 and Nasdaq Extend Rally After Consumer Inflation Unexpectedly Eased In April

Barry Adams
13 May, 2025
New York City

Wall Street indexes inched higher in early trading after consumer price inflation eased for the third consecutive month. 

The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.6% after consumer price inflation unexpectedly fell in April. 

The annual consumer price inflation in April edged lower to 2.3% from 2.4% in March, according to the latest data released by the U.S. Bureau of Labor Statistics. 

The core rate of inflation, which excludes volatile food and energy prices, held steady at an annual pace of 2.8%. 

The decline in overall inflation was driven by the 3.7% decrease in energy prices, but the food price index increased 2.8%, and the shelter index held steady at 4%. 

Gasoline prices fell at a faster annual pace of 11.8% compared to the 9.8% decline in the previous month, but natural gas prices accelerated to 15.7% from the 9.4% annual pace in the previous month. 

In Monday's trading, the S&P 500 index and the Nasdaq Composite indexes soared 4% after the U.S. backed down from its proposed sky-high tariffs in early April, and China agreed to lower its retaliatory tariffs. 

 The two sides agreed to pause tariffs for 90 days and search for a longer-term agreement.

Chinese negotiators held firm on their demands and forced the Trump administration to roll back the 145% proposed in early April to the 30% level announced on March 4. 

 

Commodities, Currencies, Indexes, Yields  

The S&P 500 index increased 0.3% to 5,859.38, the Nasdaq Composite edged up 0.6% to 18,823.49, and the Russell 2000 index advanced 4.0% to 2,103.97.   

The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 4.45%, and 30-year Treasury bonds declined to 4.90%.  

WTI crude oil increased $0.78 to $62.73 a barrel, and natural gas prices edged higher by $0.04 to $3.69 a thermal unit.  Gold increased by $4.32 to 3,240.35 an ounce, and silver edged up by $0.05 to $32.62.  

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.44 to 101.35 and traded at a two-year high.  

 

U.S. Stock Movers  

Coinbase Global Inc. soared 10% to 227.90, and the cryptocurrency trading platform operator was selected to be included in the S&P 500 index. 

Discover Financial Services declined 2.6% to $197.24, and the credit card company was selected to be dropped from the S&P 500 index before the start of trading on May 19. 

UnitedHealth Group plunged 9.5% to $343.80 after the company suspended its 2025 outlook because of the higher-than-expected medical expenditures. 

Meanwhile, the company said Chief Executive Andrew Witty has decided to step down from the office, effective immediately, for personal reasons.