Tue May 13 14:20:00 UTC 2025: **News Article:**
**Stocks Mixed as Inflation Eases, China Trade Truce Euphoria Fades**
NEW YORK – U.S. stocks presented a mixed picture Tuesday, with the Dow Jones Industrial Average slipping 0.3% while the S&P 500 rose 0.5% and the Nasdaq Composite advanced nearly 1%. The market digested the latest Consumer Price Index (CPI) report, revealing that inflation pressures eased in April, even as initial excitement over the recent U.S.-China trade agreement tempered.
The CPI showed the slowest annual inflation rate since 2021, with a 2.3% increase year-over-year. This came as many of President Trump’s tariffs were unveiled. The data supports expectations of a potential Federal Reserve interest rate cut as early as September.
Dragging down the Dow was a significant drop in UnitedHealth shares, which fell around 10% after the company suspended its 2025 guidance, citing rising costs, and announced the immediate departure of CEO Andrew Witty for personal reasons. Other healthcare stocks, including Humana and CVS, also felt the impact.
In corporate news, Honda warned of a potential $3 billion hit to its full-year profit due to U.S. tariffs on cars and car parts.
On the upside, Nvidia continued its surge, closing above the $3 trillion market capitalization for the first time since February, fueled by enthusiasm over the temporary tariff reduction by the Trump administration.
Shares of Coinbase also surged nearly 10% after the crypto exchange provider announced it would join the S&P 500.
**Summary:**
U.S. stocks had a mixed day as investors analyzed the latest CPI report, which indicated easing inflation. Gains in the S&P 500 and Nasdaq were offset by a decline in the Dow, heavily impacted by a sharp drop in UnitedHealth stock following a CEO departure and revised guidance. The market mood shifted as the initial optimism surrounding the U.S.-China trade truce waned, with concerns about the impact of tariffs and potential economic stimulus adjustments in China coming into focus.
First Piper 