The Week Ahead: CPI and Earnings Test the Stock Market Rally Near Record Highs
Author: James Hyerczyk
Updated: August 9, 2026
Key Points
- U.S. equities, including the Dow, Nasdaq, and S&P 500, posted strong weekly gains, remaining above their rising 52-week moving averages.
- Upcoming CPI and PPI reports will be critical in assessing the Federal Reserve's tightening policy.
- CoreWeave, Cisco, and Applied Materials are set to report earnings, which will provide insights into AI spending trends.
Market Overview
U.S. equities finished the previous week sharply higher, with the Dow Jones Industrial Average closing at 54,036.93 (up 2.96%), the Nasdaq Composite at 26,690.62 (up 5.19%), and the S&P 500 at 7,757.64 (up 3.58%).
Inflation data has returned to the forefront as July payrolls showed a decline of 23,000, with wage growth slowing to its weakest pace in nearly five years. This has led to reduced expectations for further Federal Reserve tightening, making the upcoming CPI and PPI reports crucial for market direction.
Earnings and Economic Releases
Second-quarter earnings growth is tracking near 48%, with over 85% of S&P 500 companies having reported, significantly higher than the initial estimate of 24%. Excluding investment-related gains from Alphabet and Amazon, growth remains around 29%, supported by strong demand in cloud revenue and AI.
Key economic releases and earnings to watch include:
- Monday, Aug. 10: Barrick Mining, Ferguson Enterprises, and Monday.com earnings.
- Tuesday, Aug. 11: Cardinal Health and Sea Limited earnings, along with NFIB Small Business Index and ADP Weekly Employment Change.
- Wednesday, Aug. 12: Core CPI and CPI reports, alongside earnings from Cisco Systems.
- Thursday, Aug. 13: PPI and unemployment claims, with earnings from Applied Materials.
- Friday, Aug. 14: Core Retail Sales and Consumer Sentiment reports.
Technical Outlook
All major indices are currently above their rising 52-week simple moving averages (SMAs), indicating a sustained long-term uptrend. The Dow, Nasdaq, and S&P 500 have established key support and resistance levels, with the Dow showing support at 51,542.06 and resistance at 54,744.33.
Outlook
The upcoming CPI and PPI reports are pivotal for market sentiment, alongside retail sales and consumer sentiment data. Earnings from CoreWeave, Cisco, and Applied Materials will also be closely monitored. A favorable inflation outlook and strong earnings guidance could support the current market trend, while unfavorable data may challenge support levels.
Conclusion
As the market approaches critical economic indicators and earnings reports, traders will be assessing the implications for Federal Reserve policy and overall market direction. The interplay between inflation data and corporate earnings will be key in determining the sustainability of the recent market rally.