Wall Street is poised for a critical week as investors keep an eye on inflation data, consumer spending trends, and geopolitical tensions surrounding Iran. The S&P 500 has experienced a remarkable recovery, climbing over 16% from its late-March lows, buoyed by stronger-than-expected corporate earnings and reduced concerns regarding the economic impact of the Iran conflict. The index has gained approximately 8% in 2026, while the Nasdaq Composite has risen nearly 13%, reaching record highs. Oil prices have surged more than 60% this year due to ongoing tensions, which are expected to be a topic during the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Investors are particularly focused on inflation data, with the U.S. consumer price index (CPI) anticipated to show a 0.6% increase for April. The core CPI, which excludes volatile food and energy prices, will be crucial for understanding underlying inflation trends. Rising gasoline prices, which have recently crossed $4.50 per gallon, may impact consumer spending and complicate the inflation outlook.