US Stocks Face Inflation Test Amid Record-High Rally

A sharp technology-led rally that has pushed US stocks to record highs will be tested next week by fresh inflation data, which could build the case for the Federal Reserve to raise interest rates.

The S&P 500 this week posted its first all-time closing high in two months, propelled by tech and semiconductor shares. Over a four-session stretch ending on Tuesday, the benchmark index gained 5.75%, its biggest four-day surge since April 2025.

Economists expect the US consumer price index (CPI) to rise 3.4% on a year-over-year basis, according to a Reuters poll as of Thursday. A 2.5% annual rise is projected for core CPI, which excludes food and energy components.