US Stocks Close Slightly Higher After Flat Trading Day

The S&P 500 closed slightly higher after a lackluster session of trading, as investors awaited upcoming economic data following a strong start to the week. The market had been boosted by soft inflation data and a temporary tariff truce between the US and China.

Investors were also keeping an eye on trade developments as President Donald Trump secured $600 billion in commitments from Saudi Arabia while on his tour of the Gulf states. Some tech companies experienced a rally after the administration announced artificial intelligence deals in the Middle East on Tuesday.

According to Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, there is still uncertainty over what world leaders, including President Trump, will say regarding trade. He noted that while earlier tariff policies had been put on hold, no final deals have been made.

The recent announcements of a 90-day tariff pause on April 9 and a limited US-UK trade agreement last week have helped boost equities. Additionally, data released on Tuesday showed a moderate rebound in US consumer prices for the month of April.

However, Federal Reserve Vice Chair Philip Jefferson expressed uncertainty about the future outlook, despite progress towards the Fed’s two percent inflation goal. Chicago Fed President Austan Goolsbee also stated that the recent data may not reflect the impact of rising tariffs. Investors will be closely watching Fed Chair Jerome Powell’s comments on Thursday for any clues on the central bank’s plans for monetary policy easing.

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