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Wall Street climbs following a slowdown in inflation as the S&P 500 erases its loss for 2025

SUMMARY:

  • U.S. slowed to 2.3% in April, easing economic fears
  • AI and tech stocks like and Palantir surged in value
  • stock jumped 23% after joining the index

NEW YORK (AP) — Most U.S. stocks are rising Tuesday following an encouraging report that showed inflation unexpectedly slowed across the country last month.

The S&P 500 was up 0.9% in afternoon trading, coming off a big gain to start the week after the United States and China announced a 90-day pause in their trade war to allow for negotiations. The Industrial Average was down 193 points, or 0.5%, as of 12:40 p.m. Eastern time, and the Nasdaq composite was 1.7% higher as AI and other tech stocks led the way.

Stocks have been roaring back since the S&P 500 fell nearly 20% below its record last month on hopes that President Donald Trump will ease his stiff tariffs on trading partners worldwide before they create a recession and send inflation spiking higher. The S&P 500, which sits at the center of many 401(k) accounts, is back within 4% of its all-time high set in February and has erased its losses for the year so far.

Tuesday’s report said that even with all the uncertainty around trade, and even with many businesses rushing to import products from other countries before tariffs raise their prices, inflation slowed to 2.3% last month from 2.4% in March.

It’s encouraging because such data pulls the economy further from a worst-case scenario called “stagflation,” one where the economy stagnates but inflation remains high. The has no good tools to fix the toxic combination. It could try to lower rates to help the economy, for example, but that would likely lead to worse inflation in the short term.

Even with Tuesday’s encouraging report, though, economists and analysts say inflation may still run higher in coming months because of Trump’s tariffs. That will likely leave the Fed waiting for more data to guide their decision on whether and when to cut in order to help the economy.

It’s similar to the wait that investors in general are enduring. With the Fed set to make no moves on interest rates for the time being, markets will likely trade “with negotiation and reconciliation headlines,” according to Alexandra Wilson-Elizondo, global cohead and co-chief investment officer of multi-asset solutions within Goldman Sachs Asset Management.

“I think investors are aware that the trade deal is not done yet,” said Louis Wong, director for Phillip Securities Group in Hong Kong.

“I would advise investors to remain cautious in the near term and to be prepared for unexpected news from the trade front,” he added.

On Wall Street, Coinbase Global jumped 23% after the cryptocurrency exchange learned its stock will join the widely followed S&P 500 index next week. That means many investment funds will likewise add it before trading begins on Monday. Coinbase will replace Discover Financial Services, which is getting bought by Capital One Financial.

Stocks in the artificial-intelligence industry were also strong. Nvidia rose 6.2% and was the biggest single force lifting the S&P 500. Super Micro Computer, which builds servers used in AI, jumped 13.7%, and GE Vernova, which is hoping to power vast AI data centers, rose 6.5%. Palantir Technologies gained 9.4%.

They helped offset Group, whose shares tumbled 15.8% after it suspended its full-year financial forecast due to higher-than-expected medical costs. The nation’s largest health insurer also announced that CEO Andrew Witty was stepping down for personal reasons and that Chairman Stephen Hemsley will become CEO, effective immediately.

UnitedHealth was the main reason the Dow was lagging behind other U.S. stock indexes.

In the bond market, Treasury yields were ticking higher with hopes for the . The yield on the 10-year Treasury rose to 4.49% from 4.45% late Monday.

The two-year Treasury yield, which moves more closely with expectations for Fed action, ticked up to 4.02% from 3.98%.

In abroad, indexes were mixed across Europe and Asia. Stocks fell 1.9% in Shanghai but rose 1.4% in Tokyo.

Automakers were among the big gainers in Japan. Nissan Motor Co. added 3% ahead of an announcement that it plans to lay off 20,000 of its workers as part of its restructuring efforts. The automaker said Tuesday that it racked up a loss of 670.9 billion yen ($4.5 billion) in the last fiscal year.

Trump trade war faces legal challenge as businesses, states argue his tariffs exceeded his power

SUMMARY:

  • Trump used to impose on many nations
  • At least seven lawsuits challenge the legality of the tariffs
  • Small businesses and states say aren’t an emergency

 

is waging a without getting approval from Congress: He declared a national emergency to slap import taxes — tariffs — on almost every country on earth.

The president is now facing at least seven lawsuits that argue he’s gone too far and asserted power he does not have.

A three-judge panel of the U.S. Court of , which deals specifically with civil lawsuits involving international trade , held the first hearing on the challenges Tuesday morning in New York. Five small businesses are asking the court to block the sweeping import taxes that Trump announced April 2 – “Liberation Day,” he called it.

Declaring that the United States’ huge and long-running trade deficits add up to a national emergency, Trump invoked the 1977 International Emergency Economic Powers Act (IEPPA) and rolled out 10% tariffs on many countries. He imposed higher– up to 50% — “reciprocal” tariffs on countries that sold more goods to the United States than the U.S. sold them. (Trump later suspended those higher tariffs for 90 days.)

Trump’s tariffs rattled global markets and raised fears that they would disrupt commerce and slow U.S. and global economic growth.

Jeffrey Schwab, senior counsel and director of litigation at the nonprofit Liberty Justice Center, said the president is exceeding the act’s authority. “That statute doesn’t actually say anything about giving the president the power to tariff,” said Schwab, who is representing the small businesses. “It doesn’t say the word tariff.”

In their complaint, the businesses also call Trump’s emergency “a figment of his own imagination: trade deficits, which have persisted for decades without causing economic harm, are not an emergency.” The U.S. has, in fact, run a trade deficit – the gap between exports and imports – with the rest of the world for 49 straight years, through good times and bad.

But the Trump administration argues that courts approved President Richard Nixon’s emergency use of tariffs in a 1971 economic crisis. The Nixon administration successfully cited its authority under the 1917 Trading With Enemy Act, which preceded and supplied some of the language used in IEPPA.

The legal battle against Trump’s tariffs has created unusual bedfellows, uniting states led by Democratic governors with libertarian groups – including the Liberty Justice Center – that often seek to overturn government regulation of businesses. A dozen states have filed suit against Trump’s tariffs in the New York trade court. A hearing in that case is scheduled for May 21.

Kathleen Claussen, a professor and trade-law expert at Georgetown Law, said Tuesday’s hearing and another scheduled for the states’ lawsuit in the coming weeks will likely set the tone for legal battles over tariffs to come. If the court agrees to block the tariffs under the emergency economic-powers act, the Trump administration will certainly appeal. “It strikes me probably this probably is something that has to be decided by the ,” she said.

And if the cases do go to the Supreme Court, legal experts say, it’s possible the justices will use conservative legal doctrines they cited to rein in government powers claimed by Democratic President Joe Biden administration to strike down or limit tariffs imposed by Trump, a Republican.

The gives the power to impose taxes — including tariffs — to Congress. But over the years lawmakers ceded power over trade policy to the White House, clearing the way for Trump’s expansive use of tariffs.

Some lawmakers now want to reclaim some of the authority they’ve given up.

Republican Sen. Chuck Grassley of Iowa and Democratic Sen. Maria Cantwell of Washington, for instance, have introduced legislation that would require presidents to justify new tariffs to Congress. Lawmakers would then have 60 days to approve the tariffs. Otherwise, they would expire.

But their proposal appears to stand little chance of becoming law, given most Republican lawmakers’ deference to Trump and the president’s veto power. “That train has left the station,” said trade lawyer Warren Maruyama, who was general counsel for the Office of the U.S. Trade Representative in the administration of President George W. Bush.

For now, many American businesses are struggling to cope with Trump’s tariffs, which have lifted America’s average tariff to the highest level since 1934 — even after a trade truce with China was announced Monday, according to Yale University’s Budget Lab.

Victor Schwartz of New York City has spent the last 39 years building a business importing wine and spirits from small producers across the world. The tariffs are hitting his business hard. His customers want regional wines from around the world, so he can’t just shift to American vintages. And the state requires him to post prices a month in advance so it’s tough to keep up with Trump’s ever-changing tariffs.

His business — V.O.S. Selections — is one of the five plaintiffs in Tuesday’s hearing. “It’s a race against time,” he said. “Will we get through it? I’m not sure exactly.”

Northern Virginia sees surge in housing inventory

The saw a nearly 70% increase in in April, compared with 2024, the reports.

data released Tuesday shows that Northern Virginia saw a 69% increase in active monthly listings from last year, reaching 2,508 properties. April’s monthly supply of inventory — a measure of how many months homes would remain on the market if no new inventory were added — increased to 1.85 months, a 65.8% increase over the previous year and a 27.58% increase over March.

NVAR reports that 1,584 homes were sold in April — a 2.4% decrease from the same month in 2024. But despite fewer transactions, the association reports the total dollar volume rose to more than $1.4 billion, a 2.2% increase from last year. NVAR says this increase is driven partially by the continued rise in home values.

The median sale price last month was $779,000, up 3.7% from April 2024. NVAR believes this demonstrates sustained buyer demand in a competitive region.

“Rising prices and steady buyer interest signal that Northern Virginia’s housing market remains fundamentally strong, even as overall sales dipped slightly,” said NVAR CEO Ryan McLaughlin in a statement. “Homeowners continue to benefit from meaningful equity growth, while buyers are acting decisively when the right opportunity arises.”

Homes spent an average of 14 days on the market last month — steady from last year.

NVAR Board Member Rob Carney said in a statement that the current market gives home buyers the benefit of more choices and a better chance of having their offers accepted.

When Northern Virginia’s active listings in March saw a 63.6% increase over the same month in 2024, some speculated part of the uptick was due to the labor turmoil in the federal sector. Under ‘s administration, tens of thousands of federal employees have been fired or put on leave this year as part of President Donald Trump’s efforts to cut federal spending. There have also been in the government contracting industry due to Trump cutting federal contracts. At least 175,000 federal workers lived in the region as of 2023, according to data from the Northern Virginia Regional Commission.

NVAR said Tuesday that while inventory has increased substantially, there is still no significant data indicating that this is being driven by changes in the federal .

“With a healthier balance between supply and demand, we’re seeing a more stable marketplace emerge,” McLaughlin said in a statement. “That’s good for long-term sustainability and economic vitality in our region.”

Microsoft to lay off about 3% of its workforce

SUMMARY:

  • lays off about 3% of its workforce—around 6,000 jobs
  • Cuts affect all levels, with focus on reducing management layers
  • hit , , and other core business units

Microsoft began laying off nearly 3% of its entire workforce Tuesday, its largest mass layoff in more than two years.

The tech giant didn’t disclose the total amount of lost jobs but it will amount to about 6,000 people.

Microsoft employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. About 55% of those workers were in the U.S.

Microsoft, based in Redmond, Washington, said the layoffs will be across all levels and geographies but the cuts will focus on reducing the number of managers. Notices to employees began going out on Tuesday.

Microsoft announced a smaller round of performance-based layoffs in January. But the 3% cuts will be Microsoft’s biggest since early 2023, when the company cut 10,000 workers, almost 5% of its workforce, joining other tech companies that were scaling back their pandemic-era expansions.

The latest layoffs come just weeks after Microsoft reported strong sales and profits that beat expectations for the January-March quarter, which investors took as a dose of relief during a turbulent time for the tech sector and .

Microsoft’s , Amy Hood, said on an April earnings call that the company was focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers.” She also said the headcount in March was 2% higher than a year earlier, and down slightly compared to the end of last year.

The layoffs are expected to hit across all parts of Microsoft’s business, including the career networking site LinkedIn and the video game platform Xbox.

The company didn’t give a specific reason for the layoffs, only that they were part of “organizational changes necessary to best position the company for success in a dynamic marketplace.”

Microsoft has said it has been spending $80 billion in the fiscal year that ends in June on building data centers and other infrastructure it needs to develop to operate its technology. Those tools have been pitched as changing the way people work, including in Microsoft’s own workplaces.

Microsoft CEO told Meta CEO Mark Zuckerberg at an AI event last month at Meta’s headquarters that “maybe 20, 30% of the code” for some of Microsoft’s coding projects “are probably all written by software.”

Saddle Creek Logistics to lay off 54 Richmond employees

Florida-based plans to lay off 54 employees at its location in July.

Saddle Creek, in compliance with the (WARN) Act, notified the state Friday of plans for a mass layoff at the Richmond site at 4701 Commerce Drive. Human Resources Director Stacey Loyd wrote in a letter to Rapid Response State Coordinator Brett Tavel that the are expected to be permanent.

She wrote that affected employees have been notified of their separation dates, and layoffs are expected to begin on July 1 and completed by July 31.

“There will not be any bumping rights for the affected employees, that is, employees will not be able to displace more junior employees out of their job positions as a result of this mass layoff,” she wrote.

The solutions company, which specializes in order fulfillment, warehousing and transportation services, has a 460,000 square-foot facility at 4701 Commerce Drive in Richmond.

Saddle Creek did not immediately return requests for comment on the reason for the layoffs.

The company announced earlier this year it was laying off 73 workers from an Atlanta operation, starting on June 1.

In an April 3 blog post, Saddle Creek noted that shifting trade policies are bound to have a far-reaching impact on global supply chains.

The company said imposed by “are expected to have a sizable impact on a wide variety of consumer product categories.” It also said recent developments with trade are prompting many companies to reevaluate their supply chains and explore both short and long-term strategies to mitigate risks.

Virginia Works has reported multiple companies’ plans to lay off workers over the past few months. In May, Georgia-Pacific said it planned to close its plywood mill in Emporia, leaving 554 people unemployed, and in April, Sterling-based business management firm Goldschmitt and Associates said it expected to lay off 217 employees in May. Federal contractor Mitre announced in April it would lay off 442 people in by June 3.

Inflation cooled again even as some tariffs took effect. But economists don’t expect that to last

SUMMARY:

  • rose 2.3% in April, lowest since 2020
  • have not yet significantly impacted
  • Grocery prices dipped, led by sharp drop in egg prices
  • Economists expect inflation to climb by summer

 

WASHINGTON (AP) — Inflation cooled for the third straight month in April even after some of ‘s tariffs took effect, though economists and many business owners expect inflation will climb by this summer.

Consumer prices rose 2.3% in April from a year ago, the said Tuesday, down from 2.4% in March and the smallest increase in more than four years. On a monthly basis, prices rose modestly, increasing 0.2% from March to April after falling 0.1% the previous month, the first drop in five years.

Grocery prices dipped 0.4% from March to April in what will come as a relief to many people stretching family budgets for the basics. It was the biggest decline in food costs at home since September 2020, the government said. Egg prices fell sharply, declining 12.7%, the most in 41 years. Yet they are still 49% higher than a year ago.

Overall, the report suggests tariffs haven’t yet impacted prices for many items. Economists say the impact will more likely be seen by June or July. The 10% tariff on all goods that took effect April 5 could take two to three months to feed into the inflation data. And many companies built stockpiles of products earlier this year, enabling them to delay price hikes in hopes that the will cool.

The cost of clothing, which is mostly imported, declined 0.2% from March to April, Wednesday’s report said. New car prices were unchanged. And grocery prices fell despite fears that tariffs on some goods from Mexico would boost food costs.

“It’s early days for tariff effects,” said Laura Rosner-Warburton, co-founder of MacroPolicy Perspectives and formerly an economist at the ‘s New York branch. “More will come in May, June, and July. There are plenty of price increases already scheduled and on the way.”

And there were some early signs that the duties are having an impact. Computer prices rose 0.3% from March to April, a category that is heavily imported from and usually sees mild price declines. Sporting goods and toys, where many products are imported, also saw increases. And a category that includes baby strollers and car seats also got more expensive.

Still, excluding the volatile food and energy categories, core prices were also muted, rising 2.8% in April compared with a year ago, the same as in March. On a monthly basis, they increased a mild 0.2%. Economists watch core prices because they typically provide a better read on where inflation is headed.

Rosner-Warburton noted that some prices fell as business weakened, particularly in travel. Air fares and hotel prices dropped noticeably last month, contributing to lower inflation, but that may have been driven by a decline in foreign visitors to the U.S.

Some companies have raised prices and others have said they plan to do so as a result of the duties. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month it would have to raise prices on some products. The company makes 40% of its products in China.

Tool maker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs. And executives at Procter & Gamble, the consumer products giant that makes household name brands such as Crest toothpaste, Tide detergent, and Charmin toilet paper, said last month it will likely have to pass on higher prices to consumers as soon as July.

Only some early tariffs imposed by Trump were in effect in April, including 25% duties on steel and aluminum and 25% on some imports from Canada and Mexico. Trump’s initial 20% import taxes on goods from China were also in place. The steel and aluminum duties will take time to feed through into consumer products, such as cars, and may not affect retail prices for months.

Trump’s huge 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday, with some of the higher tariffs on pause for 90 days. Retailers and importers had largely stopped shipping shoes, clothes, toys, and other items when the duties were so high, but many will now resume importing from China, which should reduce the chances of empty shelves this fall.

Yet the additional 30% duties, on top of other import taxes, will likely affect prices. The Footwear Distributors and Retailers of America, a trade group, says children’s shoes from China will now pay a nearly 100% tariff, because the latest duties are on top of previous import taxes.

Matt Priest, president and CEO of the FDRA, said that the cost of shipping goods from China will likely rise as many companies scramble to get orders to the U.S. during the 90-day window.

“We’re not out of the inflationary cost woods yet,” he said.

And economists say average tariffs are now at about 18%, roughly six times higher than before Trump took office and the highest in about 90 years.

Many small businesses are relieved that the U.S. has cut its tariffs on goods from China but say they still aren’t sure what their costs will be for the remainder of this year, or whether they can avoid raising prices themselves.

Consumer prices cooled noticeably in February and March, prompting Trump to claim repeatedly on social media that there is “NO INFLATION.” Inflation has fallen to nearly the 2% target set by the Federal Reserve, the agency charged with fighting higher prices.

The Fed would have likely been gearing up to restart interest rate cuts in the absence of tariffs because inflation is down. It reduced its benchmark rate three times last year. However, it has since frozen rates while it awaits further evidence of how the tariffs — and other policy changes, such as immigration restrictions and potential tax cuts — affect the .

The smaller import taxes on Chinese goods will limit the damage to the , but combined with all the other tariffs, economists forecast they will still slow growth this year and worsen inflation.

The Yale Budget Lab, for example, estimates the tariffs will lift prices 1.7% and cost the average household about $2,800 this year.

Rick Woldenberg, CEO of Learning Resources, an educational toy company, said that the 145% tariffs would have pushed his tariff bill to $100.2 million from $2.3 million last year.

He paused shipments and production but is now strategizing how to work with the lower tariffs. He has 13 containers stored in warehouses in Los Angeles, which allows importers to defer duty payments for up to five years. And he may bring $11 million of goods from China and pay the 30% tariffs, but he’s not sure how to price them.

“We just don’t know what our costs are,” he said. “We do not know what our tariff costs are. We do not know what our freight costs are.”

BWXT CFO steps down

SUMMARY:

  • Robb A. LeMasters has stepped down from his position as executive vice president and for -based .
  • has named Chief Accounting Officer Mike T. Fitzgerald as the interim .
  • LeMasters will continue to serve the company as a special adviser during the transition.

Lynchburg-based components and fuel supplier BWX Technologies on Monday announced that Robb A. LeMasters has stepped down from his position as executive vice president and chief financial officer.

The company also announced that it has named Chief Accounting Officer Mike T. Fitzgerald as the interim CFO.

LeMasters was on BWXT’s board of directors from 2015 to 2020. He became senior vice president and chief strategy officer in 2020 and transitioned to CFO in 2021. He became executive vice president in 2024.

“During Robb LeMasters’s tenure, BWXT has delivered impressive growth and significant returns to shareholders against a backdrop of financial discipline and strategic capital allocation,” BWXT President and CEO Rex Geveden said in a statement. “His strategic insights and dedication to the company made him a trusted personal adviser and key member of my leadership team. I am deeply grateful for his contributions to BWXT and wish him well in his next chapter.”

A company spokesperson did not elaborate on the reasons for LeMasters’ departure. Geveden said in a statement that LeMasters will continue to serve the company as a special adviser during the transition.

In a statement, LeMasters said he felt “privileged” to have spent the past decade with BWXT.

“It has been the professional experience of my lifetime — from supporting a newly traded public company to realizing consistent and sustained growth quarter over quarter under Rex’s leadership,” LeMasters said. “I have every confidence that the company will continue to enjoy outstanding financial success under the stewardship of this strong finance team going forward.”

Fitzgerald joined BWXT in 2022 as vice president, finance and chief accounting officer, where he was responsible for overseeing and reporting on the company’s day-to-day financial operations. Before that, he led MorganFranklin Consulting’s aerospace and defense practice as managing director and was an audit senior manager at Deloitte & Touche. He received a rising star award from the Technology Council in 2024 due to his financial leadership.

“Mike Fitzgerald has made an impressive impact on the company in a very short time, and I look forward to working with him in this expanded role,” Geveden said in a statement. “His depth of financial understanding and extensive corporate experience will ensure a smooth transition and will support BWXT’s growth strategy and focus on operational excellence.”

According to his profile, Fitzgerald has a bachelor’s degree from James Madison University and an MBA from Fitchburg State University.

In February, the U.S. Naval Nuclear Propulsion Program awarded BWXT contracts totaling about $2.1 billion for nuclear reactor component manufacturing and material procurement for Columbia- and Virginia-class submarines and Ford-class aircraft carriers.

In March, BWXT celebrated the official opening of its new Innovation Campus, set on 11 acres in Campbell County. The campus includes 170,000 square feet of offices and manufacturing space, which will house laboratories where the company’s Advanced Technologies business unit will design, build and test advanced nuclear systems for its clients, which include NASA, the Defense Department and commercial businesses.

BWXT has about 8,700 employees and 15 major operating sites in the United States, Canada and the United Kingdom.

Tyto Athene acquires StackArmor to boost cyber compliance, cloud capabilities

Tyto Athene, a -based technology solutions company that works with defense, intelligence and civilian agencies, has completed its of , a cloud and security automation solutions company, according to a Thursday announcement.

A request for details about financial terms of the deal was not immediately returned Monday.

“The acquisition of StackArmor represents a significant milestone in Tyto’s growth strategy,” Dennis Kelly, Tyto Athene’s CEO, said in a statement.  “StackArmor’s innovative cyber, compliance and solutions will immediately enhance our ability to support critical missions across defense, national security and public safety sectors.”

Tyto Athene was founded in August 2018 when Arlington Capital Partners, a Washington, D.C.-area private investment firm that specializes in government-regulated industries, acquired the government solutions division of Black Box.

Founded in 2016, StackArmor will provide Tyto Athene with cloud strategy, migration and cloud-managed services for regulated industries in compliance with federal frameworks aimed at protecting government data. Additionally, StackArmor brings to the table cyber automation and continuous monitoring solutions, according to a news release.

In 2024, Tyto Athene acquired MindPoint Group, a McLean-based cybersecurity solutions company, and Microtel, a Maryland-based software development and systems engineering firm that works with NASA and international space programs.

Tyto Athene has 11 offices in the United States and Europe. In April, the company announced it had been awarded an indefinite delivery, indefinite quantity contract with a ceiling of $378.7 million to provide lifecycle support for the U.S. Army’s simulation, training and instrumentation programs.

Dow jumps 900 and S&P 500 climbs 2.4% following a 90-day truce in the US-China trade war

SUMMARY:

  • Industrial Average and were up more than 2% Monday morning, after and the U.S. announced trade war truce.

  • Pause in will last 90 days.

  • are back up where they were on April 2, ‘s “Liberation Day,” when he announced worldwide tariffs.

  • U.S. tariffs on Chinese goods rose as high as 145%; Chinese retaliatory tariffs on U.S. good rose up to 125%.

NEW YORK (AP) — U.S. stocks are leaping Monday after China and the United States announced a 90-day truce in their trade war. Each of the world’s two largest economies agreed to take down most of its tariffs against the other, which economists warned could start a recession and create shortages on U.S. store shelves.

The S&P 500 was up 2.4% in morning trading and back within 5.6% of its all-time high set in February. The index has been roaring higher since falling nearly 20% below that mark last month on hopes that President Donald Trump will lower his tariffs after reaching trade deals with other countries. It’s back above where it was on April 2, Trump’s “Liberation Day,” when he announced stiff worldwide tariffs that ignited worries about a potentially self-inflicted recession.

The Dow Jones Industrial Average was up 923 points, or 2.2%, as of 10:40 a.m. Eastern time, and the Nasdaq composite was 3.3% higher.

It wasn’t just stocks rising following what one analyst called a “best case scenario” for US-China tariff talks, which reduced tariffs by more than what many investors expected.

Crude oil prices jumped roughly 3% because a global economy less weakened by tariffs would be hungrier for fuel. The value of the dollar climbed against everything from the euro to the Japanese yen to the Swiss franc. And Treasury yields jumped on expectations that the won’t have to cut interest rates so deeply this year in order to protect the economy from the damage of tariffs.

Gold’s price fell as investors felt less need to buy something safe.

The move announced Monday could by itself add 0.4 percentage points to the ‘s growth this year, according to Jonathan Pingle, U.S. chief economist at UBS. Every bit counts when the U.S. economy shrank at a 0.3% annual rate in the first three months of the year.

The 90-day reprieve comes at a vital time for the economy, allowing retailers and suppliers to “ensure that shelves are stocked for the all important back-to-school and holiday shopping seasons,” said Carol Schleif, chief market strategist at BMO Private Wealth.

Of course, conditions could change quickly again, as Wall Street has seen all too often in Trump’s on-again-off-again rollout of tariffs. Plus, the reduction in U.S. and China tariffs will last only 90 days. That’s to give time for more talks following last weekend’s negotiations in Geneva, Switzerland, which the U.S. side said yielded “substantial progress.”

Until then, a joint statement said the United States will cut tariffs on Chinese goods to 30% from as high as 145%. China said its tariffs on U.S. goods will fall to 10% from 125%. That follows a deal the United States announced last week with the United Kingdom that will bring down tariffs on many U.K. imports to 10%.

Big challenges remain in the negotiations between China and the United States. And economic reports scheduled to be released this week, including on and sentiment among U.S. consumers, could show how much damage the U.S. economy has already taken because of uncertainty about tariffs. But the mood was nevertheless ebullient across Wall Street on Monday, and gains were widespread.

Apparel companies jumped to some of the bigger gains. Lululemon leaped 8.2%, for example. More than a quarter of its fabric came from mainland China last fiscal year, and a reduction in tariffs would mean a less-tough decision on whether to pass on increases to costs to customers or to eat them through reduced profits. Nike rose 7.3%.

Travel companies jumped on hopes that lower tariffs would encourage more customers to fly and feel comfortable enough to spend on trips. Carnival rose 7.5%, and Delta Air Lines climbed 6.3%.

Retailers like Best Buy and Amazon jumped because much of what they sell comes from China and elsewhere in Asia. Both rose at least 6.5%.

In abroad, indexes rose across most of Europe and Asia, though often by less than the U.S. market.

India’s Sensex shot up 3.7% after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles and drones that killed dozens of people.

Pakistan’s KSE 100 surged more than 9% and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy.

In the bond market, the yield on the 10-year Treasury jumped to 4.43% from 4.37% late Friday.

The two-year yield, which more closely tracks expectations for what the Fed will do with interest rates, jumped even more. It rose to 3.98% from 3.88% as traders ratchet back expectations for how many cuts to rates the Fed may deliver this year. Many now see just two cuts this year, according to data from CME Group.

AP Business Writers Matt Ott, Jiang Junzhe and Elaine Kurtenbach contributed.

ServicePower acquires French tech company

McLean-based field service management announced last week it had acquired France-based technology company .

The transaction closed on May 6. The companies did not disclose financial details.

Headquartered in Paris, Inveniam specializes in -powered computer vision technology. According to a news release, the company delivers visual intelligence solutions allowing enterprises — especially those in the telecommunications, utilities and infrastructure sectors — to conduct real-time quality assurance and operational assessments. It also helps these companies guide the work technicians are performing in the field with computer vision and AI techniques.

ServicePower says the will advance its goals to drive innovation and automation in the global field service management industry and that it will reduce costs and boost efficiency.

“This acquisition marks a transformative milestone for ServicePower and our customers,” ServicePower CEO Frank Gelbart said in a statement. “Inveniam’s proprietary AI technology enables us to bring a new layer of intelligence to the field — allowing for smarter decision-making, real-time visual diagnostics and better service outcomes. We’re excited to integrate Inveniam’s vision into our platform and push the boundaries of what field service technology can achieve.”

ServicePower says the acquisition will allow its customers to benefit from AI-powered visual data capture and analysis, which will automate everything from fiber optic installation checks to asset condition monitoring.

“Joining forces with ServicePower represents a pivotal moment in our journey to revolutionize field operations through Vision AI,” Ahmed Ghorbal, founder and CEO of Inveniam, said in a statement. “Since founding Inveniam, I’ve been driven by the goal of turning visual complexity in the field into scalable, real-time intelligence. Integrating our technology into ServicePower’s esteemed platform amplifies our impact, bringing us closer to a future where field operations are smarter, more autonomous and highly efficient.”

ServicePower says it will integrate Inveniam’s capabilities into its platform over the coming months.

Headquartered in , ServicePower specializes in AI-powered field service management software, helping enterprise organizations save costs and become more efficient. The company’s services are used by several Fortune 500 companies, and it operates throughout the United States, Europe, the Middle East and Africa.