Traders woke up on Wednesday to new updates on last month's inflation and retail sales trends, indicating slowing price pressures and a weaker-than-expected consumer spending in the U.S.

As a reminder, the headline inflation rate slowed as predicted from 3.5% to 3.4% year-on-year in April 2023, while retail sales showed a flat month-on-month reading, sharply decelerating from the previous 0.6% and the expected 0.4% rise.

The data triggered positive market reactions as traders bolstered their rate-cut convictions. The S&P 500, as tracked by theSPDR S&P 500 ETF Trust (NYSE:SPY), and the tech-heavy Nasdaq...