U.S. stocks rallied as inflation data showed a decline, offering hope for the Federal Reserve to potentially reduce interest rates. This positive trend was driven by easing inflationary pressures. The Dow Jones Industrial Average gained nearly 200 points, or 0.45%, while the S&P 500 rose 0.16% and the Nasdaq edged up 0.11%. Positive news on trade fronts contributed to market recovery, despite ongoing concerns about monetary policy. U.S. President Donald Trump announced a deal with China concerning rare earth minerals, which had been a significant roadblock in negotiations. However, these developments were overshadowed by the Federal Reserve’s policies and their impact on markets.