Wall Street is ending the week on a high note, buoyed by a temporary U.S.-China tariff truce and softer-than-expected inflation data. Major indexes, led by a tech surge, regained momentum early in the week and are now poised for strong weekly gains, with the S&P 500 climbing back into positive territory for the year. Yet underneath the bullish tone lies a more complex economic picture. Federal Reserve Chair Jerome Powell warned of a new era of volatile inflation, driven by frequent supply shocks. This caution tempers investor enthusiasm, as does uncertainty around fiscal policy - particularly delays in passing President Trump's latest tax package, which some lawmakers are now resisting.

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