Futures tied to the S&P 500 were flat early Tuesday following a big rally, as investors digested a softer-than-expected inflation report. S&P 500 futures climbed 0.01%, while futures on the Dow Jones Industrial Average dipped 114 points, or 0.2%, weighed by a 10% decline in UnitedHealth after the company suspended its 2025 outlook. Nasdaq-100 futures were 0.3% higher. The consumer price index, 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. Excluding food and energy, so-called core inflation ran at a 2.8% annual rate, which matched consensus estimates and was also unchanged from the prior month. Wall Street enjoyed a huge rally Monday after the U.S. and China agreed to slash steep tariffs for 90 days, raising hopes a trade war won’t tip the economy into a recession. “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.” The blue-chip Dow surged more than 1,100 points, while the S&P 500 popped over 3%, cutting its year-to-date losses to just 0.6%. The Nasdaq Composite added 4.4%. All three averages posted their best day since April 9. After negotiations in Switzerland over the weekend, the U.S. and China reached a deal to cut “reciprocal” tariffs between both countries down to 10%. The U.S.′ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%. Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to start ironing out a bigger agreement. The benchmark U.S. Treasury yield dipped on Tuesday after inflation data showed a slightly cooler than expected reading for April. The 10-year Treasury yield was down less than 1 basis point at 4.451%, while the 2-year Treasury yield fell nearly 3 basis points to 3.975%. Asia-Pacific markets traded mixed Tuesday, following Wall Street’s massive rally on the back of a trade deal 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 Hang Seng Index declining 1.87% — 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 CSI 300 index ended the day 0.15% higher at 3,896.26. Indian markets fell with the benchmark Nifty 50 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 best one-day gain since February 2021, following optimism over the India—Pakistan ceasefire. Over in Japan, the Nikkei 225 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 Kospi closed flat at 2,608.42 while the small-cap Kosdaq added 0.89% to 731.88. In Australia, the benchmark S&P/ASX 200 rose 0.43% to end the day at 8,269. Oil prices edged higher on Tuesday, with gains capped by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal. Brent crude futures gained 21 cents, or 0.3%, to $65.18 a barrel. U.S. West Texas Intermediate (WTI) crude was up 30 cents, or about 0.5%, at $62.25. The two benchmarks rose by about 4% or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar. Gold prices rose on Tuesday as the dollar crept lower and initial optimism over a trade truce between the United States and China ebbed, while investors looked forward to U.S. inflation data due later in the day. Spot gold was up 0.6% at $3,254.39 an ounce. U.S. gold futures were up 1% at $3,258.70. The dollar index slipped 0.2% after a sharp rise in the previous session. A weaker greenback makes gold less expensive for those holding other currencies.