Dow dips after Monday’s rally as CPI slows and S&P 500 outlook improves

The Dow Jones Industrial Average opened around 150 points lower on Tuesday while the S&P 500 and Nasdaq indices inched higher.

This comes after Monday’s monster rally that saw the Dow gain more than 1,100 points amid encouraging Washington–Beijing trade talks.

On Tuesday, the consumer price index increased 2.3% on an annualized basis, marking the lowest growth seen since 2021. Chris Zaccarelli, chief investment officer at Northlight Asset Management, told CNBC that the markets’ “twin fears” of a tariff-induced recession and sticky inflation have eased. As such, the markets should continue “yesterday’s celebration.”

Analysts at Goldman Sachs lifted their S&P 500 target from 6,200 to 6,500 over the next 12 months, implying an 11% gain. This marks a reversal from the firm’s two forecast cuts in March due to higher recession risk and tariff-induced uncertainty.

Shares of Boeing gained around 2.5% after Tuesday’s opening bell following Bloomberg reporting that suggested China has put an end to its ban on deliveries of its aircraft.

Coinbase’s stock was higher by around 10% after it was announced that the crypto trading platform will officially join the S&P 500 index on May 19.