The recent agreement between the US and China to substantially reduce tariffs for 90 days, following on a trade deal between the US and UK, resulted in a sense of relief among market participants and significant gains. As of May 2025, the broad Russell 3000 index of US stocks is up 0.3% year-to-date (having recouped its earlier losses), and the broad MSCI All-Country World ex-US Index is up 11.6%.
Consumer Price Index (CPI) inflation was 2.3% in April, below economist expectations and the lowest since 2021—though the impact of tariffs on inflation is complex and may not yet be fully realized, and given the shifting tariff policy, such inflation impact may (or may not) be transitory.