Wall Street Roars Back: S&P 500 Wipes Out Yearly Losses!

Stocks Surge as Optimism Soars

U.S. stocks are on fire, looking to keep the momentum going after the S&P 500 totally erased its losses for the year. Talk about a comeback!

Market Open: S&P, Dow, and Nasdaq All Up

The S&P 500 kicked off the day with a 0.24% jump, while the Dow Jones Industrial Average wasn't far behind, opening 0.2% higher. And the Nasdaq? It edged up a solid 0.38% right at the open.

What's Fueling the Rally?

It's a perfect storm of good vibes! U.S. consumer price index data and the buzz around the U.S.-China deal sent stocks soaring on Tuesday, May 13. The S&P 500, our benchmark index, saw its year-to-date losses vanish into thin air.

Even the Dow, which had a bit of a stumble on Tuesday, managed to claw its way back up. Investors are feeling bullish, and that's pushing the Nasdaq higher, with tech stocks riding the wave of positive sentiment. Nvidia's massive gains are a big part of why the tech-heavy index is flying.

Wall Street's Optimism: Tariffs and Inflation Fears Fade

This upbeat start to the day is Wall Street's way of saying, "We're not worried about tariffs or inflation anymore!"

Gold and the Dollar: Diverging Paths

Gold prices took a hit as the broader market rallied, while the U.S. dollar kept sliding for the second day in a row. The cooling of trade war tensions and easing inflation fears are what's dragging the dollar down.

Treasury Yields: A Slight Dip

Meanwhile, U.S. Treasury yields are also inching lower. The 10-year Treasury yield dropped by 1 basis point to 4.489%, and the 2-year yield fell to 4.013%.

Expert Insight: Kelsey Berro on Yields

Kelsey Berro, a fixed income portfolio manager at JPMorgan Asset Management, says the market has repriced the yield curve's front end.

"One of the reasons why yields should be more range-bound here is that while Fed rate cuts have been pushed out, we're still a long way away from thinking about Fed rate hikes," Berro told CNBC.

What's Next? Eyes on Earnings Season

On top of the CPI report and the U.S.-China trade truce, investors are keeping a close eye on the ongoing earnings season for more hints about where the market's headed next.