The S&P 500 maintains a cautiously bullish bias after Friday’s gains, with inflation data reigniting debate ahead of the October 29 FOMC meeting. September CPI rose 0.3% MoM, easing slightly from August’s 0.4% rise, while core CPI increased 0.2%, leaving the annual rate at 3.0%—a touch above expectations. Energy prices, particularly gasoline (+4.1%), were key drivers, alongside moderate increases in food and shelter costs. Economists estimate 55–80% of new tariff costs are being passed through to consumers, intensifying near-term price pressures. While inflation remains sticky, the Fed is expected to proceed with a 25 bps cut as labor weakness outweighs short-term tariff-driven inflation.
Key Levels: Support at 6,771.4 | Resistance at 6,883.8
Investor Takeaway: RSI at 81 above MA line trending sharply upward with flat MACD buying pressures; technical strength persists despite tariff-fueled inflation risks.