### Stocks Rally Amid Positive Inflation Data and Trade News; Tech Giants Lead Surge

Stocks were broadly higher on Tuesday following the release of positive inflation data, continuing the rally sparked by an easing in U.S.-China trade tensions. The S&P 500 climbed 0.9%, bringing the benchmark index into positive territory for the year, while the tech-centric Nasdaq Composite surged 1.7%. The Dow Jones Industrial Average, however, slipped 0.3%, mainly due to a sharp 15% decline in UnitedHealth Group's stock as the health insurance company announced a leadership change and suspended its full-year forecast.

On Monday, the markets reacted enthusiastically to news that the U.S. and China agreed to reduce the tariffs imposed on each other for 90 days to forge a broader trade deal. This development alleviated concerns that tariffs might ignite inflation, impede economic growth, and reduce corporate profits. Additional optimism came from the latest inflation report showing the Consumer Price Index rose at an annual rate of 2.3% in April, the lowest rate since early 2021.

Technology stocks led the market surge with significant gains among chipmakers and other tech giants. Nvidia and Broadcom saw their stocks increase by 6% and 5%, respectively, while Meta Platforms and Tesla each advanced about 3%. Other notable gains included Amazon, Apple, and Alphabet. Despite the sector's overall strong performance, Microsoft saw a slight decline.

Palantir, a data analytics firm, saw its stock soar by 10%, and server maker Super Micro Computer jumped nearly 15%. Coinbase Global's shares skyrocketed by 23% following the announcement that the crypto exchange will be added to the S&P 500. Bitcoin also experienced a substantial rise, trading recently at $104,000, up from an overnight low of $101,500.

Commodities also saw movement with gold futures rebounding 0.8% to approximately $3,250 an ounce, reversing some losses from Monday. Oil prices continued their upward trajectory, with West Texas Intermediate futures rising 3% to $63.80 per barrel. The yield on the 10-year Treasury note increased to 4.49%, reflecting slightly higher borrowing costs.

Super Micro Computer shares surged following a bullish new rating from Raymond James, which initiated coverage at an "outperform" rating with a $41 target price. Despite the gains, Supermicro's stock is still down significantly from its value a year ago, due to previous downward sales forecasts and concerns about the company’s accounting practices.

Goldman Sachs has revised its S&P 500 target upwards to 6,500 points, citing reduced tariff rates and improved economic prospects as a result of the recent U.S.-China trade negotiations. Goldman analysts now anticipate better economic growth and lessened recession risks in the coming months.

In contrast, Honda Motor's U.S.-listed shares fell sharply after the company forecasted a significant profit decline due to new U.S. tariffs. Honda also announced it would delay its Canadian electric vehicle supply chain plans. The automaker now expects a 70% drop in net profit for the fiscal year ending March 31, 2026, due to these tariffs.

UnitedHealth Group shares plummeted after announcing CEO Andrew Witty’s resignation and the suspension of its full-year outlook. The company's performance had already taken a hit in previous weeks, stressing the Dow Jones with substantial declines.

Nike shares saw a slight increase following a substantial rise on Monday. News of the tariff reduction between the U.S. and China significantly benefited Nike, given that China is a crucial market and production hub for the company. Nike's shares had previously suffered due to tariff concerns but have rebounded strongly in recent sessions.

This latest wave of market activity underscores the dynamic interplay between geopolitical developments, inflation data, and investor sentiment, all influencing the financial markets' direction amidst an ever-changing economic landscape.