July CPI data was tame, but PPI this morning provides a look at wholesale prices. Results could affect yields after Fed rate hike odds fell Wednesday. Retail sales are due Friday.
The July Consumer Price Index rose 0.1% and core inflation was up 0.2%, which Schwab experts say may keep the Fed on hold. A $42 billion 10-year Treasury auction is on tap today.
Rising oil and stubbornly high yields sent stocks down Tuesday for the fourth session in five as investors await today's CPI data. Headline CPI is seen at 0.1%, with core at 0.2%.
Though tomorrow's CPI data is the week's big report, several AI infrastructure firms share results later and eyes are on oil and Iran. There's little progress toward a resolution.
Tech and AI are driving a greater share of global equity market returns and earnings growth, raising concentration risks and the need for broader diversification.
The old week ended with a new record for the S&P 500, helped by falling yields as rate hike odds dropped on a weak jobs report. Yields and oil, along with Iran, remain watchwords.
With CPI and PCE on tap for this week, Schwab's Kevin Gordon focuses on the impact of inflation on small businesses in the U.S. in his look at the Week Ahead.
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Inflation a Pain for Small Business | Week Ahead