U.S. Markets Brace for Inflation Data, Fed Pressure, and AI Earnings This Week

TLDR

• July CPI data arrives Wednesday, with economists expecting a 0.2% rise in overall and core inflation
• The White House is considering removing Fed Governor Lisa Cook, raising central bank independence concerns
• AI infrastructure firms Nebius, CoreWeave, and Cerebras all report earnings this week
• The S&P 500 closed at record highs Friday after a strong jobs report calmed rate hike fears
• Retail sales and consumer sentiment data round out a busy Friday

U.S. markets are heading into one of the busiest weeks of the summer, with inflation readings, Federal Reserve drama, and AI earnings all on the schedule.

The S&P 500 closed Friday at record highs, up 0.6% on the day. For the week, the Nasdaq rose 5.2%, the S&P 500 gained 3.6%, and the Dow added 3%. It was the best week for all three indexes since April.

Friday’s jobs report drove the rally. Strong employment numbers eased investor fears that the Fed would raise rates in the near term.

Inflation Data in Focus

The July Consumer Price Index report lands Wednesday at 8:30 a.m. ET. Economists expect both the overall and core readings to rise 0.2%.

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