Stocks were mostly higher Tuesday after the release of encouraging inflation data, adding to big gains posted the previous session following a de-escalation in the trade spat between the U.S. and China.
The S&P 500 was up 0.9%, pushing the benchmark index into positive territory for 2025, while the tech-heavy Nasdaq Composite rose 1.7%. The Dow Jones Industrial Average slipped 0.3% and would be higher on the day were it not for a 15% drop in shares of UnitedHealth Group (UNH) after the health insurance giant suspended its full-year outlook and announced that CEO Andrew Witty had stepped down.
Stocks soared on Monday following news that the U.S. and China had agreed to slash the massive tariffs they had imposed on one another for a period of 90 days while the countries work on a broader trade agreement. The news, at least temporarily, allayed fears that the tariffs could spur inflation, weigh on economic growth and cut into corporate profits.
Sentiment got a further boost this morning after inflation data came in milder than economists had expected. The Consumer Price Index rose at an annual rate of 2.3% in April, marking the lowest level of 12-month inflation since early 2021. The tariffs that the U.S. has imposed on leading trading partners recently weren’t expected to show up in the April report, but the numbers provided an indication of how much inflationary pressure there is heading into a period when import levies are likely to push up prices.
Mega-cap technology stocks, which were among the biggest gainers on Monday, were surging again Tuesday. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) were up 6% and 5%, respectively, while Meta Platforms (META) and Tesla (TSLA) each added about 3%. Amazon (AMZN), Apple (AAPL) and Alphabet (GOOG) also gained ground, while Microsoft (MSFT) fell slightly.
Among other noteworthy tech movers, data analytics software provider Palantir (PLTR) climbed 10% and server maker Super Micro Computer (SMCI) jumped nearly 15%.
Shares of Coinbase Global (COIN) soared 23% following news that the crypto exchange will be added to the S&P 500.
Bitcoin was at $104,000 recently, up from an overnight low of $101,500. The digital currency surged above $100,000 last week for the first time since February.
Gold futures, which fell sharply on Monday as risk appetite returned following the U.S.-China trade news, were up 0.8% at around $3,250 an ounce. West Texas Intermediate futures, the U.S. crude oil benchmark, rose 3% to $63.80 per barrel, extending a recent rally after oil prices hit a four-year low in late April.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of personal and business loans, rose to 4.49% from 4.46% at yesterday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, slipped 0.7% to 101.10, after hitting its highest level in a month yesterday.
Supermicro Soars After a Bullish New Recommendation
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Super Micro Computer (SMCI) shares jumped Tuesday after Raymond James initiated coverage of the server maker’s stock with an “outperform” rating and $41 price target.
The stock was up about 15% to more than $38 in recent trading, though even with Tuesday’s gains, the shares have lost over half their value from a year ago.
Supermicro has “emerged as a market leader in AI-optimized infrastructure,” Raymond James analysts told clients. The company has 9% of the $145 billion AI platform market, which could climb, the analysts said, adding that it leads branded suppliers, according to research firm Dell’Oro.
Earlier this month, several analysts cut their price targets for Supermicro after the Nvidia (NVDA) partner reduced its sales outlook, and pointed to customers delaying product decisions amid economic uncertainty.
Supermicro shares have been volatile over the past few months, pressured by downward forecast revisions, disappointing results, and worries about the company’s accounting practices. In February, the company narrowly avoided being delisted for delinquent financial filings.
Goldman Raises S&P 500 Target
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Goldman Sachs analysts are growing more bullish on the S&P 500‘s growth prospects after the U.S. and China agreed to pare back tariffs on each other’s imports for 90 days.
The analysts said they now expect the S&P 500 over the next 12 months to rise to about 6,500 points, up from a prior forecast of 6,200. The S&P 500 was just below 5,900 in midday trading Tuesday.
Goldman pointed to “lower tariff rates, better economic growth, and less recession risk than we previously expected,” for the shift. The Trump administration’s agreement with China will reduce the levy on Chinese imports to 30% from 145% by Wednesday, while Beijing’s tariffs on U.S. goods will drop to 10% from 125%.
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The S&P 500 has gained about 22% from its recent low point in early April. The benchmark index has nudged back into positive territory for 2025.
Honda Stock Drops as Automaker Sees Big Hit From US Tariffs
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U.S.-listed shares of Honda Motor (HMC) tumbled Tuesday morning after the Japanese automaker warned it will have a significant drop in profit because of uncertainty over new U.S. tariffs. It will also postpone plans for a new Canadian electric vehicle supply chain as demand for EVs slides.
For the fiscal year ending March 31, 2026, Honda sees net profit slumping 70% year-over-year to 250.0 billion yen ($1.69 billion). It expects operating profit declining 59% to 500.0 billion yen ($3.38 billion), and sales to fall 6.4% to 20.30 trillion yen ($137.27 billion).
Honda Director, President, and Representative Executive Officer Toshihiro Mibe said in a call with analysts that the tariffs would have a negative impact of JPY650 billion ($4.40 billion) in the current fiscal year. “I think the tariff impact will continue to change as time goes by, and we have to think about these major changes taking place,” Mibe said, according to a transcript provided by AlphaSense.
Mibe noted that Honda was already looking at ways to respond, saying that “if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”
Mibe also pointed out that its plan announced in April 2024 of an EV operation in Canada would be put on hold for at least two years since “in North America, the EV market growth is slowing down.”
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Honda shares were down more than 5% in recent trading. Despite today’s losses, the stock is up slightly year-to-date.
UnitedHealth Slides As CEO Exits, Outlook Suspended
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Shares of UnitedHealth Group (UNH) sank in early trading Tuesday as the health insurance giant replaced its CEO and suspended its 2025 outlook.
The company said Andrew Witty decided “to step down as CEO for personal reasons,” and that former CEO and current board chair Stephen Hemsley has been appointed as his replacement, effective immediately. Hemsley held the CEO role from 2006 to 2017.
In addition, UnitedHealth suspended its full-year outlook “as care activity continued to accelerate while also broadening to more types of benefit offerings than seen in the first quarter, and the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.”
The suspension comes weeks after UnitedHealth cut its full-year profit forecast while reported first-quarter results below expectations. The performance and reduced forecast led to a 22% share decline on April 17— the company’s worst day since 1998—that brought the Dow down with it.
UnitedHealth shares were down 13% in early trading, pulling the Dow lower. Other insurance stocks, including CVS Health (CVS), Centene (CNC), Humana (HUM) and Elevance Health (ELV), were also down sharply this morning.
Watch These Nike Levels After Stock’s Monday Surge
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Nike (NKE) shares inched higher in premarket trading after surging Monday on news that the U.S. and China would slash tariffs on one another.
The development was good news for the sports apparel and equipment giant, which generated 15% of its revenue from China in its latest quarter and relies on the country as a major global supply chain hub. Analysts at Jefferies recently pointed out that large companies such as Nike could see significantly fewer costs as trade discussions progress, despite having planned for higher hefty import duties, Barron’s reported.
Nike shares slumped as much as 37% between late February and early April amid concerns that tariffs could significantly increase production costs, leading to increased pressure on the company’s profit margins. However, a more optimistic trade outlook has seen the stock rebound 20% from last month’s low as of Monday’s close. The stock was up 0.5% at just under $63 this morning, after gaining more than 7% yesterday.
Since gapping sharply lower in early April, Nike shares consolidated within an ascending triangle before breaking out above the pattern’s upper trendline in Monday’s trading session.
Importantly, Monday’s move occurred on above-average volume, indicating buying conviction by larger market participants. Moreover, the breakout saw the relative strength index cross back above the neutral threshold to signal bullish price momentum.
Investors should watch crucial overhead areas on Nike’s chart around $63, $71 and $79, while also monitoring a key support level near $59.
Read the full technical analysis piece here.
Major Index Futures Mixed After Monday Rally
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Futures tied to the Dow Jones Industrial Average were down 0.5%.
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S&P 500 futures were off 0.1%.
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Nasdaq 100 futures rose 0.1%.
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