The latest U.S. inflation data has sparked optimism among investors, with the S&P 500 poised to open higher today. Despite a slight increase in inflation, the Consumer Price Index (CPI) remains in line with expectations, potentially paving the way for the Federal Reserve to cut interest rates. This move could boost the benchmark index, which has already risen over 10% this year.

According to Sam Stovall, Chief Investment Strategist at CFRA Research, the S&P 500 could reach 5,415 by the end of 2024. Stovall is optimistic about the market's trajectory, citing better-than-expected earnings and a projected 15% advance for 2025.

He believes the bull market will maintain its upward momentum over the next 12 months, potentially even surpassing 5,600.The core consumer price index, excluding food and energy, also aligned with forecasts, increasing 0.3% in April.

With inflation under control and earnings on the rise, the stage is set for the S&P 500 to continue its climb. As the market navigates the complex landscape of inflation, interest rates, and earnings, investors are eagerly watching for the next move.