S&P 500 Climbs to 7,399 Despite May CPI Nowcast Surging to 3.89%

The S&P 500 rose 0.84% to 7,398.93 on May 9, testing records even as Cleveland Fed's May TTM CPI nowcast jumped to 3.89%—up 33bps from April's 3.56%—exacerbated by Iran's Strait of Hormuz closure driving oil shocks. The saga started March 9 with WTI spiking 11% above $100 on Trump strikes, plunging S&P 1.4% to 6,625 by March 18 amid Fed rate hold and 3.4% wholesale inflation. A $1T buyback-fueled rally hit April 24 highs, but April 29 FOMC's four dissents, Brent at $110/bbl, $4.45/gal gas, and CAPE 41.8 signal mounting Fed tightening risks.