Wholesale prices posted the biggest drop in April since the pandemic in 2020, but economists say the decline in inflation appeared to be a one-off that might not be sustained if tariffs persist at current levels.

U.S. April wholesale inflation measured by the Producer Price Index fell 0.5%, seasonally adjusted. That's the biggest drop since 2020, according to the Bureau of Labor Statistics.

The dollar fell and major U.S. stock indexes rose on Tuesday on news that U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets.

Wall Street stocks mostly rose Tuesday while oil prices advanced, extending a rally as the improved state of US-China trade boosts the economic outlook.