U.S. CPI data: is there upside left in the S&P 500?

S&P 500 is slated to open in green today after the U.S. Bureau of Labour Statistics said inflation was up in line with expectations in April. 

S&P 500 could hit $5,400 level in 2024

Versus a year ago, the consumer price index (CPI) stood at 3.4% last month versus at 3.5% in March. 

The inflation data today may create more room for the U.S. Federal Reserve to begin cutting rates that is broadly expected to serve as a tailwind for the benchmark index. 

In fact, Sam Stovall of CFRA Research expects the S&P 500 to end this year at around the 5,415 level. On CNBC’s “Squawk Box”, he said last week:

Core inflation data for April

For the month, headline inflation came in up 0.3% on Wednesday versus a 0.4% increase expected.

Excluding food and energy, the so-called core consumer price index was at 0.3% for the month - also in line with the economists’ forecast. Stovall also told CNBC:

He even expects the S&P 500 to top 5,600 level over the next twelve months. The benchmark index is already up more than 10% for the year at writing.