DAX gains as US-China tariff pause lifts sentiment; traders eye ZEW sentiment forecast and US CPI for direction. EU trade tensions may cap upside.

Wall Street made a strong comeback Tuesday, with the S&P 500 clawing back into the green for 2025, buoyed by optimism over easing US-China trade tensions, a lighter-than-expected inflation print, and a powerful rally in artificial intelligence stocks.

US economic outlook improves, inflation forecasts drop and recession odds fall after US-China trade deal to reduce the highest tariffs for 90 days.

Since U.S. President Donald Trump’s April 2 reciprocal tariff announcement, the 10-year Treasury yield has whipsawed in a 75-basis-point range, plunging to a six-month low and then rebounding to a two-month high within a week, driving a key bond volatility index to an 18-month high.

Ethereum (ETH) saw a quick rebound on Tuesday, rising 9% following a soft April Consumer Price Index (CPI) reading in the United States (US). The top altcoin bounced off the $2,400 level and stretched its weekly gains to 50% as it continues to see sustained demand, with more analysts predicting a rotation from BTC toward ETH.

Bitcoin price surges above $104K as April CPI cools to 2.3%, boosting Fed rate-cut bets and fueling bullish market sentiment. Bitcoin Rises Above $104K as

XRP price outlook brightens as Ripple’s Monica Long forecasts surging adoption amid shifting US crypto sentiment.