S&P500, Nasdaq Composite gain on inflation data; Dow Jones in red as UnitedHealth drops 14%

Tuesday’s muted session followed a blockbuster Monday on Wall Street, when optimism over a U.S.–China trade thaw sent stocks soaring.

U.S. stocks were mixed on Tuesday, taking a breather after a strong rally in the previous session, as investors digested cooler-than-expected inflation data and reassessed the outlook for interest rates.

The S&P 500 rose 0.7 percent and the Nasdaq Composite gained 1 percent, extending Monday’s momentum. The Dow Jones Industrial Average, however, slipped 160 points, or 0.3 percent, dragged down by a sharp 14 percent plunge in UnitedHealth shares.

Fresh consumer price index (CPI) data showed inflation slowing slightly in April. Headline CPI rose 2.3 percent year-on-year, easing from March and coming in below economists’ expectations of 2.4 percent. Core inflation, which excludes food and energy, held steady at 2.8 percent, in line with forecasts.

The data offered relief to investors concerned about the dual risks of persistent inflation and slowing growth.

Tuesday’s muted session followed a blockbuster Monday on Wall Street, when optimism over a U.S.–China trade thaw sent stocks soaring. The Dow surged over 1,100 points, while the S&P 500 jumped more than 3 percent and the Nasdaq rallied 4.4 percent, marking their best day since April 9.

The gains were sparked by a weekend breakthrough in Switzerland, where U.S. and Chinese officials agreed to reduce reciprocal tariffs to 10 percent for 90 days — a significant de-escalation in trade tensions. However, existing 20 percent tariffs on fentanyl-related Chinese imports remain, keeping total Chinese tariff exposure at 30 percent.

Shares of UnitedHealth plunged 14 percent after the healthcare giant withdrew its 2025 guidance, citing a spike in medical costs that exceeded expectations. In a separate development, the company announced the sudden resignation of CEO Andrew Witty, who stepped down with immediate effect, citing personal reasons.

Rigetti Computing tumbled over 7 percent after the quantum computing firm reported first-quarter revenue of $1.5 million, falling short of analyst estimates of $2.6 million, according to FactSet. Despite the revenue miss, the company surprised on the bottom line, posting a profit of 13 cents per share versus expectations of a 5-cent loss.

In contrast, Coinbase shares soared 17 percent after news broke that the cryptocurrency exchange will be added to the S&P 500. The stock will replace Discover Financial Services in the benchmark index, with the change set to take effect before trading begins on May 19.

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