Here’s What’s Ahead on Wall Street

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The rallying U.S. stock market will take its cues next week from inflation and consumer spending data, developments in the ​war in Iran, and a high-stakes meeting between the leaders of the U.S. and China.

U.S. equities have been on a tear, with the benchmark S&P ‌500 (.SPX), opens new tab up more than 16% from its low for the year, hit in late March. The strongest U.S. quarterly earnings season in more than four years has lifted sentiment for equities, while worries about worst-case economic fallout from the Iran war have abated and investors are jumping in for fear of missing out on gains.

"We have seen this tremendous rebound as markets have willed themselves to focus on only the positive," said Kristina Hooper, chief market ​strategist at Man Group.

Hopes for an end to the Middle East conflict, which began in late February with U.S.-Israeli strikes on Iran, remain at the forefront for ​Wall Street. In particular, investors are eager to see a reopening of the Strait of Hormuz, a critical choke point for global oil ⁠supplies.

Energy prices have soared in the wake of the Iran war, with U.S. crude up more than 60% for the year.

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