S&P 500 Reaches All-Time High on Soft Inflation Data

The S&P 500 index reached an all-time high as two consecutive days of soft inflation data lifted market sentiment, while other indices like the Nasdaq and DJIA failed to make new highs, indicating a bearish divergence.

This development comes amidst hopes that Iran and the U.S. would reach an agreement to reopen the Strait of Hormuz, which led to a 6% increase in crude oil prices.

The benign inflation data reduced the perceived urgency of another Federal Reserve rate increase, contributing to the S&P 500's rally.