NEW YORK, New York - A better-than-expected CPI reading sent the Standard and Poor's 500 and the Nasdaq Composite higher on Tuesday, while the news weighed on the U.S. dollar.

The consumer price index, a broad measure of goods and services costs came in at 2.3 percent for April, against expectations of 2.4 percent. "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis in

April, after falling 0.1 percent in March," the U.S. Bureau of Labor Statistics announced Tuesday. "Over the last 12 months, the all items index increased 2.3 percent before seasonal adjustment."

"And just like that, the markets' twin fears, a tariff-induced recession and sticky inflation, have been greatly assuaged," Chris Zaccarelli, chief investment officer at Northlight Asset Management told CNBC Tuesday. "We're still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday's celebration."

Key U.S. Index Performances

• Standard and Poor's 500: Closed at 5,886.55, gaining 42.36 points (plus 0.72 percent) on strength in technology and communication services sectors.

• Dow Jones Industrial Average: Fell to 42,140.43, dropping 269.67 points (minus 0.64 percent) amid weakness in industrial and financial stocks.

• NASDAQ Composite: Jumped to 19,010.08, surging 301.74 points (plus 1.61 percent) as megacap tech stocks led the rally.

Market Analysis

The divergence between indices reflected shifting investor sentiment, with growth stocks outperforming value shares. Trading volumes were robust, particularly in the NASDAQ which saw nearly 8 billion shares change hands.

Global Forex Markets Show Mixed Movements in Tuesday's Trading Session, Aussie & Kiwi do best

The foreign exchange market saw divergent performances among major currency pairs on Tuesday, with commodity-linked currencies gaining the most ground while the U.S. dollar weakened overall against major rivals.

Key Currency Movements

• EUR/USD (Euro/US Dollar): Rose to 1.1187, gaining 0.95 percent as the euro strengthened amid improved risk sentiment.

• USD/JPY (US Dollar/Japanese Yen): Fell to 147.48, declining 0.65 percent as the yen rebounded slightly from recent lows.

• USD/CAD (US Dollar/Canadian Dollar): Dropped to 1.3934, down 0.28 percent as oil prices supported the loonie.

• GBP/USD (British Pound/US Dollar): Climbed to 1.3301, advancing 0.97 percent on stronger UK economic data.

• USD/CHF (US Dollar/Swiss Franc): Eased to 0.8399, losing 0.64 percent as the franc gained amid safe-haven demand.

Commodity Currencies Rally

• AUD/USD (Australian Dollar/US Dollar): Surged to 0.6475, jumping 1.64 percent on strong commodity exports.

• NZD/USD (New Zealand Dollar/US Dollar): Strengthened to 0.5938, rising 1.44 percent following upbeat dairy price forecasts., 

Global Markets Show Mixed Performance in Tuesday's Trading Session

 Global stock markets delivered a mixed performance on Tuesday, with some indices posting gains while others slipped into negative territory.

Canadian Market Update

• S&P/TSX Composite: Edged up to 25,616.86, adding 84.68 points (plus 0.33 percent) supported by gains in the materials and energy sectors.

UK and European Markets

• FTSE 100 (UK): Closed at 8,602.92, down 2.06 points (minus 0.02 percent).

• DAX (Germany): Rose to 23,638.56, gaining 72.02 points (plus 0.31 percent).

• CAC 40 (France): Advanced to 7,873.83, up 23.73 points (plus 0.30 percent).

• EURO STOXX 50: Increased to 5,416.21, climbing 23.85 points (plus 0.44 percent).

• Euronext 100: Finished at 1,589.85, up 7.08 points (plus 0.45 percent).

• BEL 20 (Belgium): Dipped to 4,398.49, shedding 11.56 points (minus 0.26 percent).

Asia-Pacific & Southeast Asian Markets

• Hang Seng (Hong Kong): Plunged to 23,108.27, dropping 441.19 points (minus 1.87 percent).

• SSE Composite (China): Closed at 3,374.87, up 5.63 points (plus 0.17 percent).

• Nikkei 225 (Japan): Jumped to 38,183.26, gaining 539.00 points (plus 1.43 percent).

• STI Index (Singapore): Edged up to 3,881.05, gaining 4.89 points (plus 0.13 percent).

• S&P/ASX 200 (Australia): Closed at 8,269.00, up 35.50 points (plus 0.43 percent).

• All Ordinaries (Australia): Rose to 8,510.70, adding 43.70 points (plus 0.52 percent).

• S&P BSE SENSEX (India): Fell sharply to 81,148.22, losing 1,281.68 points (minus 1.55 percent).

• IDX Composite (Indonesia): Inched up to 6,832.80, rising 5.05 points (plus 0.07 percent).

• FTSE Bursa Malaysia KLCI: Surged to 1,582.39, jumping 35.89 points (plus 2.32 percent).

• S&P/NZX 50 (New Zealand): Climbed to 12,786.74, up 109.99 points (plus 0.87 percent).

• KOSPI (South Korea): Ended at 2,608.42, up slightly by 1.09 points (plus 0.04 percent).

• TWSE (Taiwan): Gained 200.60 points to 21,330.14 (plus 0.95 percent).

Middle East & Africa

• TA-125 (Israel): Closed at 2,664.75, up 0.44 points (plus 0.02 percent).

• EGX 30 (Egypt): Rose to 31,692.80, adding 115.80 points (plus 0.37 percent).

• Top 40 USD Net TRI (South Africa): Increased to 4,983.71, up 10.41 points (plus 0.21 percent).