U.S. stocks rose following an encouraging report that showed inflation unexpectedly slowed across the country last month.

The S&P 500 climbed 0.7% Tuesday and erased its loss for the year so far. The Dow Jones Industrial Average fell 0.6%, and the Nasdaq composite rose 1.6% as AI and other tech stocks led the way.

The report on inflation could give the Federal Reserve more leeway to cut interest rates later this year to help the economy, but analysts and economists cautioned that inflation could still run higher in coming months because of President Donald Trump’s tariffs.

On Tuesday:

The S&P 500 rose 42.36 points, or 0.7%, to 5,886.55.

The Dow Jones Industrial Average fell 269.67 points, or 0.6%, to 42,140.43.

The Nasdaq composite rose 301.74 points, or 1.6%, to 19,010.08.

The Russell 2000 index of smaller companies rose 10.15 points, or 0.5%, to 2,102.35.

For the week:

The S&P 500 is up 226.64 points, or 4%.

The Dow is up 891.05 points, or 2.2%.

The Nasdaq is up 1,081.17, or 6%.

The Russell 2000 is up 79.27 points, or 3.9%.

For the year:

The S&P 500 is up 4.92 points, or 0.1%.

The Dow is down 403.79 points, or 0.9%.

The Nasdaq is down 300.71 or 1.6%.

The Russell 2000 is down 127.81 points, or 5.7%.

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