The rose Tuesday, clawing back into positive territory for the year, as investors extended the sharp gains seen in the previous session due to easing U.S.-China trade tensions.

The broad market index gained 0.7%, while the climbed 1.3%, aided by a more than 5% rise in shares of . Meta Platforms was also among Tuesday's outperformers, rising more than 2%, along with Netflix. Amazon shares were also up 2%.

The lagged, losing 160 points, or 0.3%, as a 14% drop in pressured the benchmark.

Tuesday's gain put the S&P 500 up around 0.1% for 2025. At one point, the index was down more than 17% for the year, as trade tensions dented investor confidence in equities.

However, Wall Street got a reprieve this week after the U.S. and China agreed to a 90-day tariff pause earlier this week. The news sent stocks surging on Monday, with the Dow soaring more than 1,000 points.

"Couple [the trade news] with a massive chips deal in Saudi Arabia, ticks down in inflation which will pull rates cuts closer, and substantive details of [tax cuts] -- you get a full risk on market," said Jamie Cox, managing partner at Harris Financial Group. The White House on Tuesday announced a

Softer inflation

Adding to Tuesday's gains was softer-than-expected inflation data released earlier in the day.

The , a broad measure of goods and services costs across the U.S. economy, increased 2.3% on an annualized basis in April. Economists polled by Dow Jones expected inflation to remain at a 2.4% rate last month on a year-over-year basis.

"And just like that, the markets' twin fears – a tariff-induced recession and sticky inflation – have been greatly assuaged," said Chris Zaccarelli, chief investment officer at Northlight Asset Management. "We're still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday's (China-trade) celebration."

UnitedHealth shares at lowest level since Feb. 2021

shares tumbled 13% to trade at lows not seen since February 2021. The sell-off came after the company said for "personal reasons" and suspended its 2025 forecast.

Witty will act as a senior advisor to his successor, Stephen Hemsley, who served as UnitedHealth Group's CEO from 2006 to 2017.

The company said its decision to pull its guidance was partly due to higher medical costs, which dragged down other insurance stocks.

— Yun Li

Johnson & Johnson downgraded by Leerink to market perform

A proposed rule from the Centers for Medicare & Medicaid Services is bad news for 's Darzalex Faspro therapy, according to Leerink Partners. The draft says combination treatments are protected for 13 years from the date that the original compound was approved, not when the combination therapy was cleared for use.

"Darzalex Faspro may be price controlled in 2029 rather than 2034 as we had been assuming," wrote analyst David Risinger, as he downgraded J&J stock to market perform from outperform and brought the stock's price target to $153 from $169. The pair is used to treat multiple myeloma.

Johnson & Johnson's stock fell nearly 2% at the market's open. The stock is up more than 6% year to date.

The ruling could also hurt the outlook for , which was downgraded to under perform from market perform. Shares cratered about more than 14% at the market's open. The stock has been a strong performer in 2025, with a 39% gain year to date.

—Christina Cheddar Berk

S&P 500 opens near the flatline

The S&P 500 opened near the flatline on Tuesday, as investors slowed down bets on risk assets following a strong rally to start the week.

The broad market index gained 0.1%, while the Nasdaq Composite added 0.4%. The Dow Jones Industrial Average slipped 198 points, or 0.4%.

— Brian Evans

China lifts ban against Boeing, report says

China has put an end to its ban on deliveries of aircrafts, according to Bloomberg, which cited people familiar with the matter.

The move comes after the United States and China came to an agreement to temporarily cut back their tariffs. Domestic airlines and government agencies are being told this week that the deliveries can begin again at their discretion, the report said.

Shares of Boeing rose 1.5% in premarket trading.

— Michelle Fox

CPI rises less than expected in April

Consumer prices rose slightly less than expected in April, a welcomed report for investors worried about persistent inflation. The consumer price index while economists polled by Dow Jones anticipated a 2.4% advance. Month over month, CPI climbed 0.2%, matching expectations.

Economists polled by Dow Jones expected CPI to rise 0.2% month over month and 2.4% year over year.

— Fred Imbert

See the stocks moving before the bell

These are some of the stocks moving in Tuesday's premarket:

• — Shares tumbled 7% after the health insurer said it was suspending its 2025 outlook due to higher-than-expected medical expenditures. Additionally, UnitedHealth announced CEO Andrew Witty was stepping down, effective immediately, for personal reasons.
• — The quantum firm plunged more than 11% after recording $1.5 million for first-quarter revenue, below the $2.6 million consensus forecast from analysts surveyed by FactSet. However, Rigetti earned 13 cents in earnings per share, while analysts penciled in a loss of 5 cents per share.
• — Shares surged 9.2% following the announcement that the crypto trading platform will join the S&P 500, taking effect before trading on May 19. Coinbase will replace Discover Financial Services.

— Alex Harring

Inflation data want show tariff impact until at June or July, Siegel says

The U.S. is likely to see a rise in inflation from even the reduced tariffs, but it likely won't show up in Tuesday morning's data, according to Wharton professor emeritus Jeremy Siegel.

"I don't think we're going to be seeing the effects of this tariff until maybe June or July, because so little actually did come into this country and then get priced at the retail level and then sampled by the government officials to get in," Siegel said on "."

Siegel, who also serves as senior economist at Wisdom Tree, did say he believes the inflation impacts of tariffs will be short-lived and that the Federal Reserve should not overreact.

"Long-term inflation rate indicators are not going up, and the Fed should not be reacting against a supply shock," Siegel said.

— Jesse Pound

Investors should remain flexible as markets likely to remain range bound, says Wells Fargo

Wall Street still has ample headwinds to contend with even as President Donald Trump temporarily slashed stiff tariffs on China, according to Wells Fargo.

"Despite the sharp rebound in more risk assets, markets are by no means out of the woods, and we expect more volatility along with some resistance as investors continue to evaluate the tariff situation and its impact on the global economy and corporate earnings," Wells Fargo Investment Institute global equity strategist Chris Haverland wrote in a Monday note.

"We recommend a nimble approach to rebalancing for all major asset classes, as we anticipate range- bound markets toward year end," he added.

— Brian Evans

UnitedHealth falls after suspending 2025, CEO stepping down

Shares of dropped 7% in the premarket Tuesday after the company announce it is suspending its 2025 outlook due to higher-than-expected medical expenditures.

Additionally, UnitedHealth announced CEO Andrew Witty was stepping down, effective immediately, for personal reasons. Stephen Hemsley replaces Witty as chief executive.

— Fred Imbert

Asia-Pacific markets trade mixed after Wall Street's massive rally on U.S.-China trade deal

Asia-Pacific markets traded mixed Tuesday, following Wall Street's massive rally on the back of a between the U.S. and China, which includes a 90-day pause on tariffs and a drop in reciprocal tariffs by 115 percentage points.

Hong Kong stocks fell sharply, with the  declining 1.87% — its sharpest drop in nearly a month — to close at 23,108.27, while the Hang Seng Tech Index plunged 3.26% to 5,269.66. This was a reversal from the strong gains both indexes logged in the previous session. Meanwhile, mainland China's  index ended the day 0.15% higher at 3,896.26.

Indian markets fell with the benchmark  down 1.27% while the BSE Sensex lost 1.49% as of 1.42 p.m. local time. This is a reversal from the significant gains in the previous session, when Indian markets posted their , following optimism over the .

Over in Japan, the pared gains to 1.43% to end the day at 38,183.26. This marks the benchmark's fourth consecutive positive session. Meanwhile, the broader Topix index advanced 1.10% to 2,772.14, making this its 13th straight day of gains.

South Korea's  closed flat at 2,608.42 while the small-cap Kosdaq added 0.89% to 731.88.

In Australia, the benchmark rose 0.43% to end the day at 8,269.

— Amala Balakrishner

SoftBank Vision Funds swing to annual loss

's Vision Fund business on Tuesday posted a loss in the fiscal year ended March as it booked slowing gains at its massive tech investment arm.

SoftBank said it notched a gain on investment at its Vision Funds of 434.9 billion yen in the fiscal year, a 40% fall from the 724.3 billion yen booked in the previous year.

The Vision Fund segment overall logged a pretax loss of 115.02 billion yen ($777.7 mllion) versus a profit of 128.2 billion yen in the previous fiscal year.

Goldman cuts recession risk to 35% from 45% after Chinese tariff pause

Economists Goldman Sachs cut their estimated risk of a recession in the U.S. to 35% from 45% after President Donald Trump's temporary pause on Chinese tariffs.

"In light of the somewhat smaller hit to GDP growth, the reduced risk of US-China tariffs high enough to cause production disruptions, and the encouraging signal about future tariff policy decisions, we are lowering our 12-month recession probability to 35% (vs. 45% previously)," the firm wrote in a note to clients.

Goldman said the Trump administration is likely to announce other preliminary trade deals over the next few weeks, which might lower the US effective tariff rate slightly further.

— Yun Li, Michael Bloom

Stocks making moves after the bell

Check out the companies making headlines after the bell: 

•  — The electric air taxi company's shares climbed nearly 5% in after-hours trading after a better-than-feared quarterly report. Archer Aviation posted a net loss of $93.4 million, narrower than a FactSet consensus estimate of a $116.9 million loss.
• — The quantum computing firm saw shares tumbling more than 13% in extended trading after the company's first-quarter sales fell short of estimates. Rigetti's revenue of about $1.5 million came way below a FactSet consensus estimate of $2.6 million.
• — The crypto exchange surged 8% in after-hours trading. Coinbase will , replacing Discover Financial Services. The change will before the start of trading on May 19. Discover is in the process of by Capital One Financial.

— Yun Li