Bonds & Stocks
Wall Street traders drove stocks higher, with the S&P 500 and the Nasdaq 100 erasing their losses for the year after data showed limited inflationary pressures from President Donald Trump’s trade war, reinforcing bets on at least two Federal Reserve interes-rate cuts in 2025.
Economy
US inflation rose by less than forecast in April amid tame prices for clothing and new cars, suggesting little urgency so far by companies to pass along the cost of higher tariffs to consumers. The consumer price index, excluding the often volatile food and energy categories, increased 0.2% from March. That marked the third-straight month of softer-than-forecast readings.
World
The Trump administration’s temporary trade deal with China didn’t arrive in time to prevent a slowdown in the US economy, forecasters say, even if it reduces the risk of a full-blown recession later this year.