Stock markets ended the week on a high note, with the Nasdaq Composite and S&P 500 reaching record highs for four consecutive days. The Dow Jones Industrial Average saw a slight decline. Softer-than-expected inflation data fueled investor optimism, leading to expectations of interest rate cuts. Economic indicators for the week ahead include the May retail sales report and updates on manufacturing and services sectors. The recent decline in inflation suggests a positive reading for the Fed's preferred inflation gauge, the Personal Consumption Expenditures index. Economists predict a shift in the Fed's stance towards disinflation, potentially leading to rate cuts later this year. Retail sales data will provide insight into consumer spending amid higher rates. Despite a rocky start to 2024, the latest inflation data may bolster the current stock market rally, with investors hopeful for two interest rate cuts this year.