Stocks and Cryptos Surge on Soft US Inflation Data

The stock market and cryptocurrency markets have experienced a significant rally in recent weeks, with the S&P 500 and NASDAQ reaching their highest weekly closes on record. The surge was driven by softer-than-expected US inflation data and strong correlation between equities and Bitcoin (BTC).

The S&P 500 closed at $7,126.06, up 4.5% for the week, while the NASDAQ reached $24,468.48, up 6.8%. BTC also saw significant gains, reaching a weekly close above $75,400.

The rally was fueled by softer-than-expected core inflation in the March CPI report, which rose 3.3% year-over-year but was driven entirely by a surge in gasoline prices. Markets saw this as temporary and not broad-based pressure.

Market participants are now watching key price levels for confirmation of the next leg higher. The S&P 500 is expected to consolidate above $6,900-7,000 support before testing fresh records near $7,200. BTC, meanwhile, is targeting $78K-$82K if it clears $76K-$77K resistance cleanly.