Inflation Eases, Wall Street Rallies Amid U.S.-China Trade Truce

U.S. stock futures showed improvement as inflation data for April was lower than anticipated, coinciding with a 90-day pause in U.S.-China trade tensions. This truce, coupled with subdued inflation, has fueled investor confidence, affecting stocks, cryptocurrencies, and commodities. The Federal Reserve's cautious stance remains relevant amidst the ongoing trade negotiations.

The U.S. dollar slid while stock futures rose following news that April's consumer inflation fell short of expectations. President Trump's trade measures, which have disrupted global supply chains, were offset by a 90-day U.S.-China trade truce announced on Monday, easing investor concerns.

The Bureau of Labor Statistics revealed a modest 0.2% increase in the consumer price index (CPI) from March to April, with the annual rate falling to 2.3%. Despite predictions of a higher rise, this data revived interest in stocks, cryptocurrencies, and commodities.

Wall Street futures reacted positively, with the S&P 500 and Nasdaq futures pointing to a higher opening. Economists argue that the Federal Reserve's cautious approach remains crucial. Analysts believe the existing high tariffs will continue to impact U.S. growth, even as traders adjust lower expectations for Fed rate cuts.

(With inputs from agencies.)