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Indexes: Dow down 0.35%, S&P 500 up 0.92%, Nasdaq up 1.69%

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April CPI at 2.3% YoY versus 2.4% estimate

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Coinbase up after the stock's addition to the S&P 500

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UnitedHealth ( UNH ) suspends annual forecast, CEO steps down

(Updates prices to late afternoon)

By Sinéad Carew and Shashwat Chauhan

May 13 (Reuters) - The S&P 500 and the Nasdaq advanced

on Tuesday after softer-than-expected inflation numbers added to

investor optimism, which was already bolstered on Monday by a

U.S.-China trade truce.

The Dow fell, however, with the biggest weight being

UnitedHealth's ( UNH ) 16% slide after the insurance bellwether

suspended its annual forecast and its CEO stepped down.

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.

"The sustainability of the carry-through from yesterday is

positive. There was nothing in CPI to throw it off," said Carol

Schleif, chief market strategist at BMO Private Wealth in

Minneapolis.

Schleif described Monday's improvement in U.S. and China

trade relations as going "from iceberg to 80 degrees spring day

overnight" and said the 90-day pause on tariffs came in time for

retailers to import goods to build up stocks for back-to-school

and year-end holiday shopping.

Monday's relief rally followed 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 temporarily lower 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, multiple brokerages lowered their

odds of a U.S. recession.

At 2:05 p.m. EDT, the Dow Jones Industrial Average

fell 148.42 points, or 0.35%, to 42,261.68, the S&P 500

gained 54.05 points, or 0.92%, to 5,898.09 and the Nasdaq

Composite gained 316.71 points, or 1.69%, to 19,025.06.

With Tuesday's gains, the S&P 500 turned positive for the

year-to-date for the first time since March 3.

Among the S&P 500's 11 major industry sectors, technology

was the biggest gainer, up 2.1%, while healthcare

was the biggest loser, down 2.3%.

The S&P 500 and the Nasdaq have recovered 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.

However, traders leaned in to bets that the U.S. Federal

Reserve 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 Fed officials are slated to speak this week,

including Chair Jerome Powell on Thursday.

Crypto exchange operator Coinbase Global ( COIN ), which is

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

jumping 22.5%.

With more than 90% of S&P 500 companies having reported

earnings, numbers from retail giant Walmart ( WMT ) will be on

the radar later this week.

Advancing issues outnumbered decliners by a 1.93-to-1 ratio

on the NYSE where there were 156 new highs and 68 new lows.

On the Nasdaq, 2,539 stocks rose and 1,838 fell as advancing

issues outnumbered decliners by a 1.38-to-1 ratio. The S&P 500

posted 18 new 52-week highs and 6 new lows while the Nasdaq

Composite recorded 67 new highs and 60 new lows.