S&P 500 Tests Key Support as CPI and Oil Take Focus

The S&P 500 fell 1.62% despite a CPI report largely in line with expectations, with the decline primarily driven by escalating Middle East tensions and rising oil prices. Core CPI came in slightly below estimates at 0.2% month-over-month, but headline inflation remains elevated at over 8% annualized. The index has closed below the 7,300 support level, potentially opening the door to further downside toward 7,200. Oil prices are consolidating near their 10-day moving average in a bullish triangle pattern, with potential to break above $100 per barrel if tensions continue.