S&P 500 Hits 7,165 Despite Fed Inflation Spike Signaling Rally Risks

The S&P 500 reached 7,165.08, up 0.80% on April 27, even as the Federal Reserve Bank of Cleveland's latest nowcast projected trailing-12-month inflation at 3.56% as of April 23—up 26 basis points week-over-week and 116 basis points over two months. This surge stems from an Iran war-driven energy shock disrupting about 20 million barrels per day of oil shipments, roughly 20% of global demand, which has spiked U.S. gas prices to $4.14 for regular and $5.65 for diesel. With rate cut hopes fading and Shiller PE over 40, downside risks loom for the richly valued market despite recent record highs.