Stocks closed mostly higher yesterday, except for the Dow. The Nasdaq was the biggest gainer with 1.61%, followed by the S&P 500 with 0.72%.

Yesterday's gains also helped the S&P erase all of 2025's loss. They are now sitting in the plus column with a 0.08% YTD gain.

The rest of the big three indexes are not far behind. The Dow only needs another 0.95%. And the Nasdaq needs just 1.56% more.

The small-cap Russell 2000 and mid-cap S&P 400 need a little more work with 5.73% and 1.96% respectively. But they've come a long way since hitting their correction lows in mid-April. And they too are within striking distance of getting into the green for the year.

Carryover optimism lifted stocks after Monday's announced U.S./China trade progress, which dramatically slashed tariffs on both countries for 90 days, and paved the way for further talks in the coming weeks to hash out more details.

That comes on the heels of last week's trade deal with the U.K. And expectations for more deals to be announced in the coming days and weeks.

The market also got a further boost after yesterday's mostly better-than-expected Consumer Price Index (CPI) inflation report. The headline number was up 0.2% m/m vs. last month's -0.1% and views for 0.3%. The y/y rate eased to 2.3% vs. last month's 2.4% and estimates for the same. The core rate (ex-food & energy) was up 0.2% m/m vs. last month's 0.1% and expectations for 0.3%, while the y/y rate came in at 2.8%, in line with last month and the consensus.

For what it's worth, India reported lower inflation as well yesterday, easing to 3.16% vs. the previous month's 3.34%. It was the third month in a row of lower inflation readings. And that follows the U.K.'s latest inflation report which showed tamer inflation as well (2.6% vs. the previous month's 2.8%).

I mention this because inflationary environments are improving around the world. And that's good news for the world's economy.

Back to the U.S., we'll get another look at inflation on Thursday with the Producer Price Index (PPI). (The CPI covers retail inflation, while the PPI is wholesale inflation.) The headline number is expected to come in at 0.2% m/m vs. last month's -0.4%, while the y/y rate is expected to come in at 2.4% vs. last month's 2.7%. The core rate is forecast at 0.3% m/m vs. last month's -0.1%, with the y/y rate at 3.0% vs. last month's 3.3%.

Another softer inflation report could help ease the Fed's concerns over inflation.

But, the Fed's inflation concerns, which were exacerbated by the original tariff rollout, should already be easing given the sharply reduced tariffs between the U.S. and China, and the prospect of plenty of high-level trade deals that should reduce tariffs even further in the coming weeks.

Nonetheless, additional evidence that inflation continues to decline would be yet another piece of good news for the Fed, the economy and the market.

In the meantime, we?ll get MBA Mortgage Applications today. And we'll hear from Fed policymakers Christopher Waller, Phillip Jefferson and Mary Daly as they speak at their respective engagements throughout the day.

We'll also get more earnings (even though earnings season is winding down), with another 176 companies on deck to report today, including Tower Semiconductor before the open and Cisco after the close.

The week is off to a great start so far. And if all goes well today, it might look even better.

See you tomorrow,