WASHINGTON (dpa-AFX) - Stocks have moved mostly higher during trading on Tuesday, extending the rally seen over the course of the previous session. The tech-heavy Nasdaq has led the way higher, surging to its best intraday level in over two months.
Currently, the Nasdaq is up 226.52 points or 1.2 percent at 18,934.86 and the S&P 500 is up 34.37 points or 0.6 percent at 5,878.56.
The narrower Dow, on the other hand, has bucked the uptrend and dipped 155.62 points or 0.4 percent to 42,254.48.
The continued strength in the broader markets comes following the release of a Labor Department report showing consumer prices in the U.S. rose by slightly less than expected in the month of April.
The Labor Department said its consumer price index inched up by 0.2 percent in April after edging down by 0.1 percent in March. Economists had expected consumer prices to rise by 0.3 percent.
Excluding food and energy prices, core consumer prices also rose by 0.2 percent in April after creeping up by 0.1 percent in March. Core consumer prices were also expected to climb by 0.3 percent.
The report also said the annual rate of growth by consumer prices slowed to 2.3 percent in April from 2.4 percent in March, while the annual rate of growth by core consumer prices was unchanged at 2.8 percent.
The slightly tamer-than-expected inflation data has eased concerns about President Donald Trump's new tariffs on U.S. trade partners leading to higher prices.
Yesterday's news about a U.S.-China trade deal slashing steep tariffs on each other's goods is also contributing to the strength on Wall Street.
Meanwhile, a steep drop by shares of UnitedHealth (UNH) is weighing on the Dow, with the healthcare giant plunging by 15.2 percent.
The slump by UnitedHealth comes after the company suspended its full-year guidance and announced Andrew Witty is stepping down as CEO for personal reasons.
Sector News
Semiconductor and computer hardware stocks are extending the surge seen in the previous session, contributing to the strong upward move by the tech-heavy Nasdaq.
Considerable strength is also visible among airline stocks, as reflected by the 2.1 percent jump by the NYSE Arca Airline Index.
Brokerage, networking and retail stocks are also seeing notable strength, while biotechnology, healthcare and pharmaceutical stocks have shown significant moves to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index tumbled by 1.9 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.1 percent, the French CAC 40 Index is up by 0.1 percent and the German DAX Index is up by 0.2 percent.
In the bond market, treasuries are seeing further downside following the steep drop seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.2 basis points at 4.479 percent.
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