SPX: S&P 500 on a Tear with Record Above 5,300 as Investors Cheer Inflation Drop to 3.4% for April

Consumer prices edged lower for the first time this year and markets celebrated the occasion with plenty of cash splashed out on stocks.

• The S&P 500 closed at record territory on Wednesday after the latest inflation data lifted hopes of an economic cooldown. The broad-based index added 1.2% during the session, crossing 5,300 points for the first time and closing at 5,308. The other two major benchmarks — the Nasdaq Composite and the Dow Jones — also posted record runs, closing at all-time highs.
• The consumer price index, or CPI for short, showed price pressures for April eased for the first time this year. The printout was a cool 3.4% on an annual basis, lower than the 3.5% in March. And with that, investors are once again optimistic that the Federal Reserve will consider lowering interest rates at any of the upcoming meetings over the next few months.
• Retail sales, another key gauge of economic health, came in flat on a monthly basis, sliding below expectations for a 0.4% increase. No other major news is scheduled for the rest of the week, allowing traders to take in the optimistic reports and plan their next move. Futures contracts tied to the Wall Street stock averages were pointing generously to the upside.