Dow Retreats After Rally as CPI Cools, S&P 500 Target Raised
The Dow Jones Industrial Average slipped 150 points at Tuesday’s open, contrasting with modest gains in the S&P 500 and Nasdaq. This pullback follows Monday’s historic 1,100-point surge fueled by progress in US-China trade negotiations.
Fresh CPI data showed annualized inflation at 2.3% - the slowest pace since 2021. "The market’s twin demons of tariff-driven recession and persistent inflation are losing their fangs," noted Chris Zaccarelli of Northlight Asset Management. The softening price pressures suggest Monday’s euphoria may have room to run.
Gold Sachs analysts turned bullish, elevating their 12-month S&P 500 forecast from 6,200 to 6,500. The revised projection implies an 11% upside, marking a decisive reversal after two prior downgrades.
