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Indexes: Dow down 0.40%, S&P 500 up 0.77%, Nasdaq up 1.49%

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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 with afternoon trading levels)

By Shashwat Chauhan and Pranav Kashyap

May 13 (Reuters) -

The S&P 500 and the Nasdaq advanced on Tuesday on

softer-than-expected inflation numbers and market optimism

spurred by the U.S.-China trade reprieve, renewing expectations

that the Federal Reserve would lower borrowing costs soon.

The Dow fell more than 150 points, bogged down by

UnitedHealth's ( UNH ) 15.8% 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.

"We don't really see much impact from tariffs yet. It's

still too early for that, but what we do see is that inflation

is holding up decently well," said Mike Reynolds, vice president

of investment strategy at Glenmede.

"It's a good sign that inflation isn't a problem heading

into an event-driven shock like tariffs," he said.

Traders leaned into 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.

At 11:23 a.m. ET, the Dow Jones Industrial Average

fell 167.57 points, or 0.40%, to 42,242.53, the S&P 500

rose 45.25 points, or 0.77%, to 5,889.44, and the Nasdaq

Composite gained 278.78 points, or 1.49%, to 18,987.31.

Monday's relief rally came after Washington and Beijing

agreed 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, multiple brokerages lowered their

odds of a U.S. recession.

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.

The S&P 500 has turned positive on a year-to-date basis for

the first time since early March.

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

leading the pack with a 5.6% jump.

Crypto exchange operator Coinbase Global ( COIN ), which is

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

jumping 18.8%.

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 1.97-to-1 ratio

on the NYSE, and by a 1.39-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and six new

lows, while the Nasdaq Composite recorded 58 new highs and 49

new lows.