The S&P 500 index edged up 0.2% after hovering between small gains and losses throughout the day, while the Dow Jones Industrial Average finished slightly higher by less than 0.1%. The Nasdaq composite, on the other hand, rose by 0.5%.

Despite a broader decline in the S&P 500, several major stocks helped offset the losses. Amazon.com, the e-commerce giant, saw a significant boost as its stock rose by 3.9%, propelling its market value to surpass $2 trillion for the first time. This achievement followed Nvidia's recent milestone of reaching $3 trillion and briefly becoming the most valuable company on Wall Street.

However, not all companies had positive news to report. General Mills, the well-known Cheerios maker, saw a decline of 4.6% in its stock after revealing that its revenue for the latest quarter fell more sharply than analysts had expected. The company attributed this decline to lower sales volumes amid consumers' growing caution and price-consciousness amidst stubborn inflation.

Chipotle, after executing a stock split at a ratio of 50-for-1, managed to eke out a 0.3% gain on its first day of trading. Previously, the fast-casual restaurant chain had ranked among the most expensive stocks in the S&P 500. Meanwhile, FedEx contributed to balancing the losses with an impressive gain of 15.5% after reporting quarterly results that exceeded forecasts.

Exciting news emerged for Rivian, the struggling electric vehicle maker, as Volkswagen announced its intent to invest up to $5 billion in the company. This announcement propelled Rivian's stock, which soared by 23.2%.

Several large technology companies also experienced positive movement. Apple witnessed a rise of 2% in its stock, while Microsoft saw a more modest gain of 0.3%. Given the significant values of these tech giants, their performance heavily influences the market's direction.

The S&P 500 concluded the trading day with a gain of 8.60 points, reaching 5,477.90. The Dow Jones Industrial Average increased by 15.64 points to 39,127.80, and the Nasdaq climbed 87.50 points to 17,805.16.

Looking ahead, Wall Street's primary focus this week lies on the government's forthcoming inflation report, set to release on Friday. Investors eagerly await the Personal Consumption Expenditures (PCE) index, which serves as the Federal Reserve's preferred measure of inflation.

Sam Stovall, Chief Investment Strategist at CFRA, likened the current market state to a race car waiting for the green light. He stated, "The light will turn Friday morning when the PCE numbers come out." Analysts speculate that the index will reflect a slight easing of inflation to 2.6% in May, following a 2.7% reading in April. The Federal Reserve aims to control inflation and bring it back to its 2% target, but the rate has remained stubbornly high, with the PCE hovering just below 3% for months. The Consumer Price Index (CPI), another well-known indicator, has stayed around 3% throughout 2024.

The implications of the latest inflation data could influence the central bank's decision on when to initiate interest rate cuts. Currently, rates remain at the highest level in over two decades. Analysts from UBS, including Solita Marcelli, suggest that amidst easing price pressures and other economic considerations, central banks may start or continue cutting rates.

In the bond market, Treasury yields experienced mixed results, with the yield on the 10-year Treasury rising to 4.32% from 4.25% on Tuesday. Since peaking at over 4.70% in late April, the yield has mostly been falling, thereby alleviating pressure on the stock market.

Investors are hopeful that the Federal Reserve will soon commence interest rate reductions. The prevailing belief on Wall Street is that a rate cut is likely to occur during the central bank's September meeting.

Overall, despite concerns such as inflation and high borrowing costs for consumers and businesses, the economy has generally remained robust. However, economic growth has started to slow, and consumers appear to be more stressed, redirecting their spending towards necessities. Wall Street anticipates the Fed's ability to time rate cuts effectively, relieving economic pressure before a significant slowdown occurs, while still maintaining the goal of tempering inflation.

"It's too early for the market to get any encouragement or disappointment from earnings, so the near-term focus will be on economic indicators that would imply that the Fed may cut interest rates as soon as September," said Sam Stovall.