S&P 500 Tests 5,300 as Inflation Eases, Fed Policy in Focus

The market remains cautiously optimistic as the S&P 500 tests the 5300 resistance level. The deceleration in inflation is promising, yet the Federal Reserve's future monetary policy remains uncertain. Investors should stay vigilant, monitoring economic data and Fed communications to navigate potential volatility and capitalize on market opportunities.

* S&P 500 at Resistance: The index tests 5,300 amid recent inflation data.
* Inflation Slowdown: Core CPI rose just 0.3% in April, the slowest pace in 3 years. This boosted stocks, with the S&P 500 reaching a new high.
* Fed Policy: The Fed may hold steady on rates in the near term, but a September cut is increasingly likely if inflation continues to moderate.
* Key Upcoming Data: The PCE price index (will released this week) and future inflation reports will be crucial for gauging the Fed's policy stance.
* Market Outlook: Cautious optimism prevails as investors weigh the inflation slowdown and potential Fed actions.