CAPE GIRARDEAU, Mo. (KFVS) – U.S. stocks rose for the second day in a row following a surprising inflation report.
According to the latest Consumer Price Index data, inflation slowed in April. The annual rate is also the lowest since February 2021.
It follows a Monday market boost created by President Donald Trump’s agreement with Chinese officials to lower tariffs against each other for 90 days.
The stock market has had some pretty big ups and downs in 2025, but for those who are not regular players, all the headlines could be confusing.
Saying the Dow and Nasdaq are up or down has little impact on someone who doesn’t know what they are.
Certified financial planner Derieck Hodges compared them to a thermometer.
Hodges said during 75-degree weather, one person might say it’s chilly and another might say it’s stifling. Checking the thermometer will be more helpful in learning the temperature than asking someone their opinion.
Stock market indexes work the same way.
“They’re just measuring devices,” Hodges said. “The S&P 500 is just a basket of 500 companies that we’re measuring to see how they’re doing. It gives us an overall sense of how the markets are doing.”
Hodges said people investing in the stock market, whether it’s for their retirement or to make money, often invest in mutual funds or exchange-traded funds linked to these indexes.
“You can’t really buy the S&P 500, you can buy a fund that tries to emulate the S&P 500.”
Stock market index numbers change constantly. Hodges said for people whose goal is long-term growth, maybe over multiple decades, these changes don’t have a big impact.
“The markets can be very fickle, they can go down very suddenly, so it does matter, but if we’re long-haul investors, and we have our money aligned with the right type of goal, I don’t think these movements matter a lot.”
For investors nearing retirement or already in it, Hodges recommended diversifying with some safer and more growth-oriented investments.
“That way, I’m always an investor, but I have money available that’s not subject to the whims of the market when I need that money.”
Hodges said people should be mindful that playing the stock market with money needed in the short term isn’t necessarily a good idea.
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