SPX: Cooling inflation meets profit takingS&P 500SPCFD:SPXXBTFXThe S&P 500 ended the week under pressure despite encouraging U.S. economic data. Softer-than-expected inflation figures strengthened expectations that price pressures continue to ease, while producer prices also declined more than anticipated. Retail sales posted a modest increase, suggesting consumer spending remains resilient, although growth was slightly below forecasts. Although the macroeconomic backdrop remained broadly supportive, investors locked in profits after the index's recent rally. The highest weekly level was 7.577 but the index closed Friday trading at 7.644. Market participants continue to assess whether cooling inflation will reinforce expectations for future Federal Reserve policy easing, while awaiting additional economic data and the upcoming FOMC meeting for further direction. A surge in oil prices contributed to energy sector companies, where energy stocks performed the best during the week. The financial industry also gained this week supported by generally solid Q2 earnings from major U.S. banks. On the opposite side was the information technology sector, especially semiconductors, which were the primary drag on the index. Investors continued to take profits in AI related stocks after a strong rally, pushing the semiconductor index into bear market territory. Looking ahead, investors are likely to remain focused on incoming economic data and signals from Federal Reserve officials ahead of the July FOMC meeting. With inflation showing further signs of easing but equity valuations still elevated after recent gains, the market may continue to trade in a relatively narrow range.