S&P 500 rises on lower US inflation and progress in China talks — Bloomberg

US stocks experienced a year-on-year increase due to the temporary resolution of trade disputes between the US and China, coupled with a decrease in inflation in the United States. These factors positively influenced investor sentiment, as reported by Bloomberg.

The S&P 500 index rose by 0.7%, while the Nasdaq 100 gained 1.6%. The so-called “Magnificent Seven” stocks, which include Nvidia Corp., Apple Inc., and Meta Platforms Inc., climbed 8% this week, marking their best two-day gain since April.

This rally followed the release of April Consumer Price Index (CPI) data, which indicated slower-than-expected inflation in the United States. As a result, traders are now pricing in at least two rate cuts by the US central bank in 2025. Additionally, JPMorgan has adjusted its economic forecast, retracting previous warnings of a recession.

Bloomberg notes that the S&P 500 index advanced by 3.3% on Monday, fueled by optimism surrounding a trade truce between the United States and China. Stocks have rebounded sharply after experiencing a nearly 20% decline earlier this year.