{"id":24303,"date":"2025-06-12T08:24:10","date_gmt":"2025-06-12T08:24:10","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=24303"},"modified":"2025-06-12T08:24:10","modified_gmt":"2025-06-12T08:24:10","slug":"sp-500-retreats-as-cpi-curbs-market-optimism","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/sp-500-retreats-as-cpi-curbs-market-optimism\/","title":{"rendered":"S&amp;P 500 Retreats as CPI Curbs Market Optimism"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx-2025-04-24T152247.288-1024x559.png\" alt=\"\" class=\"wp-image-21196\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>S&amp;P 500 slips to 6,012.55 as traders weigh soft CPI data and trade headlines<\/li>\n\n\n\n<li>Dollar hits lowest level since April 22 as safe-haven flows lift gold, yen, and euro<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The S&amp;P 500 struggled to hold momentum on Thursday, closing at 6,012.55 after reaching an intraday high of 6,074. While inflation data from the U.S. initially buoyed sentiment, the rally faded under pressure from resurgent global risks and growing scepticism over the U.S.-China trade truce. The index slipped 0.21% on the day, showing signs of fatigue after nearing its previous record highs earlier in the week.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Stocks dip, dollar sags as trade, geopolitical tensions weigh <a href=\"https:\/\/t.co\/DhDegsj4um\">https:\/\/t.co\/DhDegsj4um<\/a> <a href=\"https:\/\/t.co\/DhDegsj4um\">https:\/\/t.co\/DhDegsj4um<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1933052911388442682?ref_src=twsrc%5Etfw\">June 12, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Market focus sharpened on the <a href=\"https:\/\/www.reuters.com\/world\/us\/us-consumer-prices-rise-moderately-may-2025-06-11\/\" target=\"_blank\" rel=\"noopener\" title=\"\">consumer price index (CPI) report<\/a>, which showed a slower-than-expected increase in U.S. inflation for May. While this initially reduced pressure on the Federal Reserve to tighten policy, traders remained cautious, recognising that upcoming producer price data and persistent tariff-related costs could fuel inflation again. The producer inflation report, due later in the day, will be closely watched for clues on the Fed\u2019s preferred Personal Consumption Expenditure Index.<\/p>\n\n\n\n<p>Traders are now pricing in a 70% chance of a quarter-point rate cut by September, even as Fed officials are <a href=\"https:\/\/t.co\/7IAlEgQGxs\" target=\"_blank\" rel=\"noopener\" title=\"\">expected to keep interest rates unchanged<\/a> in their next meeting. Shane Oliver, chief economist at AMP Capital, warned that the price impact of tariffs could feed through either as higher inflation or lower profit margins. He argued that the Fed\u2019s cautious stance is justified.<\/p>\n\n\n\n<p>Trade developments added a layer of uncertainty. President Trump reaffirmed plans to issue letters to key trade partners within one to two weeks, <a href=\"https:\/\/t.co\/97GahhL5ah\" target=\"_blank\" rel=\"noopener\" title=\"\">outlining unilateral tariff conditions<\/a> for negotiating new deals. While Trump praised the recent U.S.-China framework deal\u2014which includes easing restrictions on rare earth exports and student access\u2014markets remained unconvinced. Traders are holding back until more tangible terms are released.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The SP500 dipped from its 6074 high following a volatile session, eventually finding a temporary floor at 5997.55 before stabilising. Despite the initial rally, momentum faded through the European session as MACD flipped bearish and histogram bars turned red, indicating waning buying strength.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-14-1024x442.jpg\" alt=\"\" class=\"wp-image-24304\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: SP500 clings to 6000 after sharp pullback, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Moving averages have begun to flatten, suggesting consolidation. A modest recovery attempt is underway as price holds just above the 6000 mark, but bullish conviction remains limited unless price reclaims the 6030\u20136050 zone. A break below 5995 could open the door to further downside pressure in the near term.<\/p>\n\n\n\n<p>Volatility could spike in the coming sessions as markets digest producer price data, central bank commentary, and any additional rhetoric from the White House. Traders should watch for sharp sentiment shifts as the gap between market positioning and real-world geopolitical risks narrows.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 pulled back from highs on Thursday as easing U.S. inflation failed to offset rising global tensions and renewed tariff threats, stalling the recent equity rally. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":21196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,69],"class_list":["post-24303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-sp500"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/24303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=24303"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/24303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/21196"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=24303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=24303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=24303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}