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Indexes: Dow down 0.38%, S&P 500 up 0.21%, Nasdaq up 0.57%

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April CPI at 2.3% YoY versus 2.4% estimate

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Coinbase up after firm to join S&P 500

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UnitedHealth ( UNH ) suspends annual forecast, CEO steps down

(Updates after market open)

By Shashwat Chauhan and Pranav Kashyap

May 13 (Reuters) -

The S&P 500 and the Nasdaq inched higher on Tuesday as

investors parsed fresh inflation data and gauged its monetary

policy implications following a spirited market rally spurred by

the U.S.-China trade reprieve.

U.S. consumer prices rebounded moderately in April, with

headline inflation increasing 0.2% last month after dipping 0.1%

in March. Economists polled by Reuters had forecast that the CPI

would rise 0.3%.

The CPI climbed 2.3% in the 12 months through April, after

advancing 2.4% in the 12-month period until March.

"In terms of inflation expectations and monetary policy,

we're very much in the same place that we were before the report

came out," said Jordan Rizzuto, chief investment officer at

GammaRoad Capital Partners.

"We expect the Fed to continue to be in a wait-and-see mode

until we see some further materialization of pricing pressures

that may come from the new trade policies."

Traders leaned into bets that the Fed would hold off on

lowering interest rates until September, while still

anticipating two 25-basis-point cuts by the end of the year.

A number of U.S. Federal Reserve officials are slated to

speak this week, including Chair Jerome Powell on Thursday.

Weighing on the Dow, UnitedHealth ( UNH ) fell 12.2% after

the insurance bellwether suspended its annual forecast and its

CEO stepped down.

Seven of the 11 S&P 500 sub-sectors were higher, with a 2.4%

decline in the healthcare sector leading losses.

At 09:38 a.m., the Dow Jones Industrial Average

fell 149.69 points, or 0.38%, to 42,260.41, the S&P 500

gained 12.03 points, or 0.21%, to 5,856.22, and the Nasdaq

Composite gained 106.92 points, or 0.57%, to 18,815.27.

Monday's relief rally saw Wall Street's major indexes

soar, buoyed by Washington and Beijing's agreement to dial back

stringent reciprocal tariffs, signaling a joint effort to stave

off a global economic downturn.

The U.S. will pause the extra tariffs it imposed on Chinese

imports to 30% from 145% for three months, while Chinese duties

on U.S. imports will fall to 10% from 125% in the same period.

After the tariff truce, Goldman Sachs became the first major

brokerage to lower its probability of a U.S. recession.

The three major indexes have managed to recover from losses

since April 2 - or "Liberation Day" - when U.S. President Donald

Trump announced sweeping reciprocal tariffs.

A 90-day pause announced on April 9 for countries other than

China, along with solid earnings reports and a limited U.S.-UK

trade agreement last week, helped the S&P 500 and the tech-heavy

Nasdaq regain lost ground.

Most megacap and growth stocks swung higher, with Nvidia ( NVDA )

and Amazon.com ( AMZN ) up more than 2.3% each.

Crypto exchange operator Coinbase Global ( COIN ), which is

slated to join the S&P 500 on May 19, was among the top movers,

jumping 15%.

As earnings season draws to a close with more than 90% of

S&P 500 companies having reported earnings, investors look

forward to results from retail giant Walmart ( WMT ), expected

later this week.

Advancing issues outnumbered decliners by a 2.13-to-1 ratio

on the NYSE, and by a 1.45-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and one new

low, while the Nasdaq Composite recorded 29 new highs and 22 new

lows.