US stocks close higher, wipe out all 2025 losses

Majority of US stocks ended higher on Tuesday, with the broader market index erasing all incurred losses since the start of 2025, as investor sentiment improved amid easing trade tensions and a slowdown in annual inflation for April.

The Dow Jones Industrial Average slipped 0.64% (269 points) to close at 42,140, maintaining a modest 0.95% year-to-date (YTD) loss.

Meanwhile, the S&P 500 rose 0.72% to 5,886 points, fully erasing its losses since the start of 2025.

The Nasdaq Composite rose 1.61% (301 points) to 19,010, trimming its YTD decline to 1.56%, driven by gains in the "Magnificent Seven" tech stocks. The Roundhill Magnificent Seven ETF, which tracks them, climbed 2.21% to $51.79.

European markets posted mixed performance. The Stoxx Europe 600 edged up 0.10% to 545 points, with varying performance across all sectors.

France’s CAC 40 rose 0.30% to 7,873 and Germany’s DAX added 0.30% to a record 23,638, while the UK’s FTSE 100 held steady at 8,602.

Japan’s Nikkei 225 gained 1.45% to 38,183, and the broader TOPIX rose 1.1% to 2,772.

Brent crude futures for July delivery climbed 2.57% (or $1.67) to settle at $66.63 per barrel.

West Texas Intermediate (WTI) crude for June delivery surged 2.78% (or $1.72) to $63.67 per barrel, supported by easing trade tensions between the US and China.

June gold futures rose 0.61% (or $19.80) to close at $3,247.80 per ounce, rebounding after Monday’s sharp 3.5% drop (or $116).

Official data released today showed that the US annual US consumer inflation rate slowed to 2.3% in April, defying expectations of a steady 2.4%.