SPX: Inflation caps index gains?S&P 500SP:SPXXBTFXAlthough the S&P 500 had another relatively positive week, still, signs of exhaustion of the uptrend are evident on charts. The first two days of the trading week started with a testing level of 7.330, however, for the rest of the week, positive sentiment prevailed. Friday brought the highest weekly level at 7,5K, however, the day was traded on lower grounds. In technical analysis this is called a topping tail, which suggests that market exhausted for the moment higher grounds and points to a higher probability of a short term reversal. This happened as investors weighed persistent inflation concerns, elevated Treasury yields, and volatile oil prices driven by Middle East tensions. Rising crude prices fueled fears that the Federal Reserve may need to maintain a hawkish stance for longer, limiting upside momentum across major U.S. equities. Within the index, technology and consumer-related sectors showed mixed performance. Mega-cap names including NVIDIA, Amazon, Tesla, and Microsoft faced pressure as higher bond yields reduced appetite for growth stocks, while stronger than expected earnings continued to support broader market sentiment. Energy related stocks outperformed as oil prices remained above key psychological levels, while defensive sectors gained attention amid softer consumer confidence data and rising inflation expectations. Other mega-cap and large-cap names drawing attention included Salesforce, Costco Wholesale, Dell Technologies, and HP Inc., with market positioning for earnings releases tied to AI spending, consumer demand, and inflation-sensitive retail trends. Within the S&P 500, AI-related companies continued to dominate market direction, while retailers and consumer-focused firms were monitored for signs of slowing spending amid elevated inflation and higher oil prices. For the week ahead, investors are watching the upcoming PCE inflation data, which could influence Federal Reserve expectations and broader equity market momentum.