US open: Stocks mostly higher after softer-than-expected inflation data
By Michele Maatouk
Date: Tuesday 13 May 2025
(Sharecast News) - Stocks on Wall Street were mostly higher in early trade on Tuesday as investors mulled softer-than-expected inflation data.
At 1620 BST, the Dow Jones Industrial Average was down 0.4% at 42,242.08. However, the S&P 500 was 0.8% higher at 5,891.17 and the Nasdaq was up 1.5% at 18,990.60.
Kathleen Brooks, research director at XTB, said: "The US CPI report for April surprised on the downside. The headline CPI rate rose by 2.3% YoY, down a notch from the 2.4% expected. The core rate was steady at 2.8%.
"Monthly gains were also weaker than expected, rising by 0.2% MoM in April. This is stronger than the -0.1% monthly gain for March, but it is still a moderate increase and suggests that tariff related price pressure is not showing up in the economic data as yet.
"The key driver for inflation in the US last month was not tariffs, but shelter, which accounted for half of the increase in the index. Energy prices pushed up inflation last month, although that has fallen and should add as a downward pressure on inflation in May. Food prices fell last month, along with airfares, used cars and trucks. Household furnishings, education and healthcare costs rose last month."
In corporate news, UnitedHealth tumbled 14% after the company suspended its annual forecast and announced the departure of chief executive Andrew Witty for "personal reasons".
Microsoft nudged lower as it confirmed plans to cut 3% of its workforce.
"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson said in a statement to CNBC.
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