S&P 500 Surpasses 7,000 as Inflation Cools
The S&P 500 closed above 7,000 for the first time, a rally driven by cooling inflation and optimism around AI. The milestone coincided with January's Consumer Price Index showing a 2.4% annual increase, the lowest inflation rate in five years. The economic data is fueling market expectations that the Federal Reserve will soon begin cutting interest rates.
- The index first reached the 7,000 milestone during intraday trading on January 28, 2026, hitting a peak of 7,002.28. The climb from 6,000 to 7,000 took roughly 14 months, a significantly longer period than the 190 days it took to get from 5,000 to 6,000. - The market's valuation is elevated compared to historical averages
