Overview
- U.S. equity indexes are near record highs after a strong first half yet face fresh tests from a cluster of events next week that could shift market expectations.
- Minutes from the Fed's recent meeting showed growing concern about inflation and have raised the stakes for the upcoming consumer price report, which could change the likely path for interest rates.
- Major banks will open the second-quarter earnings season and their results will be watched for signs about consumer credit, borrowing costs and the health of household spending.
- Oil prices rose after renewed Iran-related attacks on shipping, which has lifted worries that higher fuel costs could feed into broader inflation and prompt a quicker Fed response.
- Traders will focus on the sequence of CPI, producer prices, retail sales and Fed Chair Kevin Warsh's testimony for fresh signals on rates and on corporate reports for evidence the economy can withstand tighter policy and higher energy costs.