By Gokhan Ergocun
ISTANBUL (AA) - US stocks ended mixed Tuesday after rallying the previous session amid easing trade tensions between the US and China.
The US and China agreeing to temporarily reduce mutual customs duties after weekend trade negotiations in Switzerland contributed to Monday’s rise.
Analysts noted that the temporary deal between the two countries eased fears that trade wars would lead to a global recession.
International credit rating agency Fitch Ratings said the US and China's temporary tariff reductions have significantly eased tensions, but this does not mean the trade war is over.
According to data released Tuesday by the US Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 0.2% on a monthly basis in April and 2.3% on an annual basis, below expectations. As a result, annual inflation in the US recorded its lowest level since February 2021.
Analysts said they anticipate that the Federal Reserve will wait for the price pressures that may arise due to tariff policies to become more pronounced in order to take a monetary policy step despite the slowdown in inflation on an annual basis.
Meanwhile, US President Donald Trump received an investment commitment of $600 billion in Saudi Arabia, which he visited as part of his Middle East tour.
Speaking at the 2025 Saudi-US Investment Forum in the capital Riyadh, Trump said Congress is on the verge of passing the largest tax cut bill in US history, adding “if we get that, that will be like a rocket ship for a country."
He also said on social media that inflation and gasoline, grocery and energy prices have fallen and reiterated that the Fed should also lower the policy rate.
US chip maker Nvidia announced that it will partner with Saudi Arabia's sovereign wealth fund-owned artificial intelligence (AI) startup Humain and will ship 18,000 chips to the Middle Eastern country to help power a new data center project. Nvidia's shares surged 5.6% as a result.
In addition, shares of cryptocurrency exchange Coinbase increased 24% following an announcement that the company will be included in the S&P 500 index as of May 19.
The Dow Jones Industrial Average fell 0.64%, or 269.67 points, to close at 42,140.43.
The Nasdaq Composite rose 1.61%, or 301.74 points, to 19,010.08 and the S&P 500 went up 0.72%, or 42.36 points, to 5,886.55.
The VIX Index, also known as the “fear index," dropped 0.92% to 18.22.