American stocks stabilize following Wall Street gains on US-China trade deal

American stock indexes rose and stabilized on the evening of May 12 following the announcement of a US-China trade deal. Traders' attention will now shift to upcoming key Consumer Price Index (CPI) data.

The deal was announced in a rare joint statement by US and Chinese officials. It was reached following high-level negotiations in Geneva last weekend.

On May 12, the S&P 500 rose 3.3% to the level of 5,847.7 points. The Nasdaq 100 gained 4.05%, reaching 20,875 points, while the Dow Jones Industrial Average advanced 2.9% to 42,434.15 points.

Despite optimism about the trade deal, markets remain cautious ahead of the key CPI data release on May 13. Both the headline and core CPI are expected to show no change year-over-year and month-over-month.

The US central bank has recently made it clear that it has no immediate plans to cut interest rates. Therefore, traders are hoping the upcoming inflation data might sway the Federal Reserve's decision.